Did you know that about 1 in 3 adults aged 18 to 34 in the U.S. still live with their parents? There’s absolutely no shame in this; whether you’re already living at home or considering moving back. In fact, it’s becoming a financially smart move for many.

This trend of young adults staying home has remained steady, even after a spike during the pandemic. But what’s really behind it?

Key Factors Driving the Trend

The decision to live at home is increasingly driven by economic necessity and financial strategy, not a lack of ambition.

Financial Struggles

More than 50% of Gen Z adults report that the high cost of living makes it impossible to afford the life they want, according to a 2024 Bank of America survey. The simple truth is that housing prices far outpace wage growth, making independent living increasingly unattainable for many.

Economic Instability

From the Great Recession and the 2008 financial crisis to the pandemic, many young adults have faced significant financial challenges early in their careers. With little to no emergency savings, it’s much harder to build financial stability and bounce back from economic setbacks.

Cost vs. Benefit Mindset (A Strategic Move)

For many, staying at home is a strategic financial decision. Personally, moving in with my in-laws after my son was born saved my family tens of thousands of dollars on childcare and the expense of another property. It’s about letting go of pride to make smart, long-term choices.

The Broader Impact on Society

While living at home provides necessary financial relief for individuals, it does have broader economic implications:

Reduced Consumer Spending

According to the Federal Reserve, a young adult who moves out spends about $13,000 more annually on essentials like housing, food, and transportation. When fewer young adults are able to move out, it reduces overall consumer spending in these core areas.

Shifting Societal Perceptions

In the past, there was often a stigma attached to this trend. However, this perception needs to change. Instead of viewing it as a failure, we should recognize it as a pragmatic response to a challenging economic environment. Let’s not let pride get in the way of making smart financial choices.

Final Thought

Whether you are house-hacking or living with family, the goal is the same: building a financial runway. If you are struggling with the high cost of housing, remember that focusing on building generational wealth should always take priority over fleeting perceptions of independence.