A generation of young Americans is being priced out of adulthood by soaring housing costs, with a record number living with their parents. The trend, driven by escalating rent and property prices, has reached crisis point: last year, one-third of adults aged 25-35 – over 25 million individuals – were still residing in their childhood homes.
Crucially, this is not simply a matter of joblessness; many are employed, often with university degrees. The data suggests that despite having work, the financial viability of independent living has become increasingly out of reach for a substantial proportion of this demographic. Housing costs have skyrocketed: national median asking rent has surged by 18% since pre-pandemic levels, while the median home listing price nationwide is a staggering 34% higher, according to Realtor.com.
Hannah Jones, a senior economist at Realtor.com, highlights the broader economic ramifications, saying "Every adult still in a childhood bedroom is a household not formed, a lease unsigned, a starter home unpurchased." This reflects how the US economy has created a challenging environment for young people and recent graduates, many of whom are underemployed or struggling to find jobs that align with their skills.
The implications extend far beyond the immediate financial strain on young adults. While living at home can offer significant savings by avoiding rent, it often delays the crucial milestone of first-time homeownership – a key driver of long-term household wealth. In the US, the typical first-time buyer is now aged 40. Furthermore, this trend places a burden on parents, potentially compelling them to postpone retirement, defer plans to downsize their homes, or reduce their personal savings.
Beyond the personal impact, the increased number of young adults living at home exacerbates existing issues within the housing market. Reduced engagement in the starter home market means less property turnover, which tightens an already limited supply and deepens the struggle for affordable housing – creating a cycle that makes it even harder for future generations to achieve independent living.
Realtor.com's analysis reveals a stark contrast with pre-2000 co-residence patterns: if those norms had continued, nearly 5 million fewer young adults would be living with their parents today. This highlights the dramatic shift in societal norms and underscores the urgent need for solutions to address the housing crisis.