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Young Americans, Gen Z, Are Living With Their Parents at a Record Rate
Business Insider • • business
Key Points:
- Nearly 20% of 25- to 34-year-olds now live with their parents or grandparents, a record high driven by daunting job and housing markets, delaying traditional milestones like marriage, children, and homeownership.
- Millennials experienced a similar delay in adulthood due to the Great Recession but have largely caught up in homeownership rates by their early 40s, suggesting Gen Z may follow a similar pattern despite current challenges.
- Rising interest rates, scarcity of affordable starter homes, and soaring rents have made homeownership and independent living increasingly difficult for young adults, with many choosing to stay with family for financial and social reasons.
- Despite living at home, most young adults are employed, indicating that housing affordability, rather than job availability, is the primary barrier to independence and homeownership.
- Economists remain cautiously optimistic that Gen Z will eventually enter the housing market and achieve homeownership, viewing current delays as temporary setbacks rather than permanent losses.
