About one in three Americans aged 18 to 34 lives with their parents. While it may seem like a recent trend, this pattern has been building for years. Between 2005 and 2015, the share of young adults living at home increased sharply, and since then, it has remained relatively stable—except for a spike during the COVID-19 pandemic.
The return to pre-pandemic levels doesn’t mean the pressures have eased. For many young adults, it’s simply harder to weather economic shocks. Nearly 30% of Gen Z say they want to save money but don’t earn enough. Around two in five millennials and Gen Z adults believe building wealth today is harder than it was for their parents.
A Personal Story: Victoria Franklin
Victoria Franklin, 27, has lived with her mother in New Jersey since graduating from the University of Miami in 2019. Initially, she planned to stay for a year while job hunting. But the rising cost of living changed that.
She began bartending and waitressing before landing a remote job in October 2019. With a two-hour commute to NYC now off the table, she decided to remain at home.
“I saw all of the money I was saving and thought, maybe I should stay home for a little bit. I didn’t feel an urgency to move out.”
The Financial Realities Behind Delayed Independence
More than half of Gen Z adults say they can’t afford the life they want due to high living costs. And 46% of millennials—and 32% of Gen Z—have more credit card debt than emergency savings.
Buying a home is particularly difficult. Home prices have increased much faster than incomes, making it harder for millennials and Gen Z to afford down payments.
Victoria earns between $85,000–$95,000 a year, and saves about 40–50% of her income. She questions paying $3,000 a month in rent just to make someone else rich. Instead, she plans to use her savings for a home down payment.
The Generational Divide
Victoria lives in Oceanport, New Jersey, where the median household income in 2022 was $133,000 and the average home price was around $644,000.
“My dad built this house for $350,000. He was making 10 to 15 thousand dollars less than I am, and my mom wasn’t working at the time,” she says. “That’s not even the American Dream anymore.”
Victoria frequently argues with her Aunt Judy, who believes young adults just need to make sacrifices. But as Victoria sees it, her generation is already sacrificing everything—from property to quality education.
Boomers vs. Millennials: Different Starting Lines
Older generations like Baby Boomers and Gen X came of age during a period of economic expansion. When they started households, housing and college were relatively affordable. A $70,000 household income in 1995 is equivalent to $145,000 today.
One sticking point in these intergenerational debates is perception. Many Boomers believe today’s young adults don’t want to spend their money. But the cost of living tells a different story.
The Broader Economic Impact
According to the Federal Reserve, a young adult moving out of their parents’ home contributes about $13,000 per year to the economy through housing, food, and transportation.
Delayed household formation can dampen consumer spending and slow economic growth. With fewer people forming new households, there’s less demand for furniture, renovations, and services.
And then there’s the housing crisis. In many popular regions, there simply aren’t enough affordable homes for entry-level buyers. Any effective housing policy must address both supply and demand—by building more homes and helping older homeowners downsize to free up space.
Student Loan Debt and Cultural Shifts
Student debt is another barrier. Nearly 60% of U.S. adults say it has delayed major financial milestones. Victoria pays $480 per month on her student loan—her biggest expense. The burden is heavier for Black and Hispanic borrowers, who tend to have less wealth and higher debt.
Yet student loans aren’t the only factor. Many European countries with lower student debt levels have even higher rates of adult children living with parents. In 2021, 24 out of 29 European countries had more 18–34-year-olds living at home than the U.S.—with rates over 70% in places like Italy, Greece, and Croatia.
Multigenerational living is common around the world. Victoria’s Brazilian boyfriend, for example, comes from a culture where living with parents is normal. “Why do we have to be so cold and push everybody out?” Victoria asks.
Conclusion
For many young Americans, the choice to stay with their parents is less about laziness and more about financial survival. Victoria’s mom is fine with it: “They’re saving their money. Eventually they’ll buy a house, and that works.”
What might look like failure to launch is, in many cases, a rational response to an economy that’s shifted the goalposts. Whether it’s the American Dream or just a new dream, one thing’s clear: young adults today are playing a very different game—and doing the math before making the move.