Is moving back home the smart financial move? With soaring housing costs and student loan debt, more young adults (Gen Z & Millennials) are choosing to live with their parents. Learn why this trend is on the rise and explore the financial benefits, including reduced living expenses and increased savings potential. Discover the demographics driving this shift in multigenerational living in the US
Gen Z and Millennials Moving Back Home: Why 40% of Young Americans Live with Their Parents in 2023. High housing costs, expensive college, and a challenging job market are driving a surge in multigenerational households. Learn why living at home is becoming a smart financial strategy for young adults
Moving back home: A smart financial strategy for Gen Z? With soaring housing costs and student loan debt, many young adults are choosing to live with their parents. This allows them to significantly reduce expenses on rent, groceries, and other bills, freeing up funds for emergency savings and long-term financial goals. LendingTree's chief consumer finance analyst highlights this as a key strategy for financial stability in today's economy
Analysis of 2023 American Community Survey data reveals key demographics of young adults (ages 18-30) living at home. This study, utilizing the University of Minnesota's Integrated Public Use Microdata Series, examines the 42% of young Americans residing with at least one parent, exploring factors like gender, race, and education levels contributing to this trend of multigenerational living
Unpacking the 42%: Why Young Adults Are Living at Home in 2023. Charts reveal the demographics of the 18-30 year-olds living with parents, including gender, race, and education level. Discover the factors driving this trend of multigenerational living in the US
More young men than women live at home with their parents. Analysis of 2023 data reveals that over half of young adults residing with at least one parent were male, compared to slightly less than half of those living independently. This trend highlights a significant demographic factor in multigenerational households
Multigenerational households are increasingly common, especially among young adults. Data reveals that in the US, Black, Hispanic, and Asian young adults are more likely to live with their parents than their white counterparts, highlighting a significant cultural aspect of this trend
Young adults living at home are nearly twice as likely to be enrolled in school (39%) compared to those living independently (20%). This highlights the significant impact of parental support on higher education access for Gen Z
Gen Z & Millennials Living at Home: Education & Parental Influence
A significant disparity exists in higher education attainment among young adults (18-30) living with parents versus those living independently. Only 14% of young adults living at home achieved a bachelor's degree as their highest educational level, compared to 27% of their independent peers. This highlights the potential impact of parental support (or lack thereof) on educational attainment and subsequent career opportunities
Surprisingly, more young adults without parental support were married than those living at home. A significant 96% of young adults living with at least one parent were single or never married, highlighting a key difference in relationship status based on living arrangements
Living with parents impacts young adult employment: While 82% of young adults living independently are employed, only 66% of those living at home are working. Furthermore, young adults living with parents are almost twice as likely to be out of the workforce (neither employed nor seeking work)
Young adults living at home worked fewer hours and earned less than their peers living independently, according to a recent study. This trend highlights the financial impact of multigenerational living arrangements, a growing phenomenon among Gen Z and Millennials navigating high housing costs and economic uncertainty
Young adults living at home with parents: A growing trend fueled by economic factors. Pew Research Center data reveals a significant increase in multigenerational households, particularly among younger Americans facing high housing costs, stagnant wages, and limited job opportunities. This trend mirrors the surge seen during the Great Recession, highlighting the economic pressures impacting today's young adults
More young adults are choosing to live at home with their parents, driven by soaring housing costs and economic uncertainty. This multigenerational living arrangement offers significant financial benefits, allowing them to save money on rent, groceries, and other expenses. While some embrace this for family connection and financial stability, others face limited housing options. Discover why this trend is on the rise and who is most likely to live at home with their parents
In 2022, 11% of 16-to-24-year-olds were disconnected—neither employed nor enrolled in school, according to a 2024 Measure of America report. This group faced higher poverty rates, lacked health insurance more often, and relied more heavily on government assistance. Disconnection disproportionately impacts minority and young people of color
“These are creative young people who, for a whole host of reasons, haven’t had the opportunities or the support they’ve needed to explore what they want to do and figure out how to transition to adulthood in a way that’s exciting for them,” said Megan Millenky, a senior research associate at MRDC who studies youth development.
In an unsteady economy, it’s unlikely that Gen Z and younger millennials’ interest in living at home will fade anytime soon. And, as Millenky said, the group reflects “quite a spectrum” of America’s socioeconomic ladder.
Source: Original Article