More millennials and Gen Z-ers are opting to wait to leave the nest. Find out why they aren’t moving on as quickly as older generations.
Study Finds Adults Staying With Family in High Numbers
One recent study showed that an unusually high percentage of millennial and Generation Z adults are still living with family, and the trend is consistent across the country.
68% of Gen Z Still Lives at Home
Based on data presented by RentCafe.com, 68% of adults from Generation Z are still living at home with family. By comparison, 20% of millennials still live at home.
Some Jobs More Likely to Lead to Cohabitating With Family
The study found that people who worked in certain occupations had the highest likelihood of living with family into adulthood, including food service, retail, and construction workers. Teachers were also high on the list.
Trends Result From “Financial or Health-Related Circumstances”
“It mainly boils down to either financial or health-related circumstances,” the study read. Many young adults are staying put to save money, while others act as live-in caregivers for aging relatives.
The Impact of the Cost of Living
Cost of living was a significant factor, according to the study. As one of the most expensive cities in the country, Los Angeles reported the highest percentage (35%) of adults from the millennial generation living in multi-generational homes.
Raleigh, NC, a Hot Spot for Gen Z Staying With Family
On the Gen Z side, 87% were still living at home in Raleigh, NC – more than any other city.
Adults Priced Out of Many Housing Markets
As the cost of living soars throughout the country, it makes financial sense that families are choosing to reside together. Housing prices have continued to rise, and in most states, it’s impossible to rent an average apartment on minimum wage.
Senior Care a Significant Motivator
The cost of adequate senior care homes and in-home care has also increased drastically, which means it’s more feasible for many elderly Americans to have younger family members move in to take care of them.
Some Saving Money for Home-Buying Plans
The study also showed that many of those still living at home were doing so in hopes of saving money for a down payment on a future home purchase.
Nearly Half of Young Adults Live at Home
A different study from Bloomberg showed that 45% of adults under 30 are still living with family. Researchers pointed out that the figure was similar to the number of adults living at home in the 1940s.
Historical Figures Resulting from the Great Depression
At that time, the effects of the Great Depression were still being felt across America, and families remained intact for longer periods because of the nation’s economic devastation during and following World War II.
A Difficult Landscape
The fact that today’s numbers rival those of the ‘40s points to an economic disaster that millennials and Gen Z-ers are struggling to navigate.
More People Okay With Living at Home
The bright side is that the perception of living at home long-term has changed. 87% of people believe that living with family isn’t shameful, understanding that there are many complex factors that contribute to the decision.
Homeownership Dreams Slashed By High Costs
In a Redfin survey last year, it was reported that a significant number of young adults believe they will never be homeowners. 18% of the millennials surveyed and 12% of the Gen Z respondents said they didn’t believe they would ever be able to afford to purchase a home.
Rental Market Unaffordable in Much of the Country
Add that to the fact that the rental market is highly competitive and unaffordable in many U.S. cities, and it’s easy to understand why young adults would choose to stay in their parents’ homes long after turning 18.
Many Millennials Still Able to Own Homes
However, the same study showed that over half of millennials were homeowners in 2023, and those numbers have increased year over year.
87% Increase In Young Adults Living With Parents Since 2000
Per the U.S. census, the number of young adults between 25 and 34 who still live in multi-generational households has rocketed up 87% since roughly 2000. For context, the median rent in the U.S. in 2000 was $602, while today, it is $1747.
Other Reasons for Cohabitation
For some Americans, the choice to stay home is more about family togetherness and less about finances. Those families are reaping the benefits of sharing expenses while maintaining close relationships between generations.
Less People Live at Home in Affordable Cities
The RentCafe.com study noted that some cities, including Cincinnati, OH, and Milwaukee, WI, experienced a decrease in millennials and Gen Z-ers residing with family when judged against the numbers pre-COVID.
Those cities are among the most affordable metropolitan areas in the United States.
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The post Skyrocketing Expenses Pin Young Adults to Parents’ Homes first appeared on Thrift My Life.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.