Amidst a wave of uncertainty during the onset of the pandemic, millions of young adults across the U.S. moved back home with their parents. Now, over two years later, two-thirds of millennials and Gen Zers who returned home have still not flown the coop, according to a recent LendingTree survey of 1,300 people and analysis of Census Bureau data.
A slim majority, 51%, of young adults reported that their return home was a necessity—particularly a financial one. Of the cohort who moved home, 39% reported that they’ve been able to pay down debt, and 31% have been focused on saving for a down payment.
On the bright side, of those who have moved out of their parents’ homes, nearly three in 10 reported buying their first home. And they are not keen on ever moving back home again, with 71% reporting that they would only return to their childhood digs if there were no other option.
Among the report’s other findings:
- Living at home is not necessarily an impediment to dating, as 45% of millennials and Gen Zers say they’d date someone living with their parents, and 38% said they would consider it. Only 17% were opposed to the notion.
- 85% of parents would let their children move back in as adults or have previously done so, and most (73%) wouldn’t charge them rent, but more than half stipulated that they would need to get a job or help out with groceries, cooking and cleaning.
- The percentage of adults ages 24 to 40 who live with their parents is above 20% in three states—Hawaii (21.6%), New Jersey (20.7%) and Florida (20.1%)—while just 5.3% of these adults in North Dakota live with their parents.
The takeaway:
“With inflation as high as it is and with rates rising, it can be difficult for anyone to make ends meet in today’s economy,” said Jacob Channel, LendingTree’s senior economist.
Addressing young adults who are preparing to fly the coop again, Channel said, “If you’ve got enough money to afford to buy a house and pay for a mortgage each month, now can be a good time to buy a home, even if prices and rates are high.”
Read the full report here.
