In an unexpected twist, younger adults in the United States are increasingly bidding farewell to landlords and embracing the comforts of their childhood homes. A recent survey conducted by Harris Poll for Bloomberg has revealed a remarkable trend – approximately 45% of individuals aged 18 to 29 have chosen to move back in with their families. This percentage marks the highest recorded figure since the 1940s. The data further highlights that over 60% of Gen-Zers and millennials have returned to the nest in the past two years, often driven by financial hardships.
The decision to reside with parents has become a pragmatic choice for many young Americans, who find themselves grappling with soaring housing costs, burdensome student debt, the specter of inflation, and broader economic instability that has disproportionately impacted their generation.
At the forefront of reasons for this living arrangement, with over 40% of respondents citing it, is the quest to save money. Additionally, 30% disclosed that they cannot afford independent living expenses. Other factors influencing this choice include the need to reduce debt (19%), recover from unexpected financial setbacks (16%), and cope with job loss (10%), according to the survey conducted in August.
It’s worth noting that the financial struggles are not exclusive to young people. An overwhelming 81% of respondents across all age groups believe that achieving financial security today is more challenging than it was two decades ago. Importantly, 74% of those surveyed acknowledge the existence of a “broken economic situation” hindering younger Americans’ path to financial success.
As more Gen-Zers and millennials return to their parents’ homes, attitudes toward this living arrangement are evolving. The survey reveals that 40% of young adults are content with their choice to live at home, while 33% perceive it as a wise decision. Furthermore, 87% of respondents expressed sympathy for those opting to reside with their families, advocating against judgment for this choice.
In a related shift, the real estate landscape is witnessing a significant change. Baby boomers, aged 58 to 76, have recently overtaken millennials as the largest share of U.S. homebuyers. In 2022, boomers constituted 39% of home buyers, compared to 28% for millennials, according to data from the National Association of Realtors. This marks a notable increase from 29% in the previous year and the highest percentage for any generation.
Meanwhile, the cost of renting has steadily surged, with an increase of over 18% since 2020. As of August, the median rent in the United States reached a record-high of $2,052 per month, as reported by Rent.com.
This trend of young adults returning home reflects the complex economic challenges faced by a generation burdened with debt and escalating living costs. While it reshapes traditional notions of independence, it also calls attention to the urgent need for solutions to alleviate the financial pressures on young Americans.
Credit: CBS News
