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Young adults are increasingly delaying moving out of their parents' homes due to various factors such as rising housing costs, economic uncertainty, and the struggle to secure stable jobs. Many also face challenges related to student debt, while some prefer the emotional and practical support of living at home. This trend is reshaping expectations about independence and adulthood, with more young people prioritizing financial stability and personal growth before taking the step toward living on their own.
Around 33% of U.S. adults aged 18 to 34 are living with at least one parent. A 2024 Bank of America survey revealed that over half of Gen Z adults feel their income is insufficient to live the life they desire due to high living costs. In a 2022 survey, 36% of Americans expressed concern about the societal impact of more young adults staying with their parents. U.S. Census data shows this trend has been consistent, with a notable increase during the pandemic.
Before COVID-19, the previous rise in young adults living with parents occurred between 2005 and 2015, driven by the Great Recession. Joanne Hsu, a University of Michigan researcher, noted that economic shocks, such as recessions and pandemics, make it harder for young adults to financially stand on their own.
According to the 2024 Bank of America survey, many Gen Z adults struggle to meet their living expectations, with insufficient income and lack of emergency savings.
Victoria Franklin, 27, moved back to her mother’s house in 2019 after graduating college and struggling to secure a job in business administration. Despite initially planning to move out, the pandemic led her to continue living at home while working remotely. She plans to save for a home by putting aside 40-50% of her income.
Although staying with parents can be financially advantageous, experts argue that this trend can hurt the broader economy. Hsu mentioned that one key to boosting consumer spending is when young adults form independent households. A 2019 Federal Reserve paper estimated that moving out could result in $13,000 more annual spending on essentials like housing, food, and transportation.
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Source: CNBC
