More than 15 percent of millennials aged 26 to 41 are living back home with their parents as they grapple with rising housing costs, according to the most recent Census statistics from 2022. The data reveals an alarming trend of adults being forced to live with their parents as they struggle to save enough money to achieve the American Dream.
Over the past two decades, the number of Americans aged 25 to 34 living at home has surged by over 87 percent, highlighting the challenges young people face in regaining stability after pandemic lockdowns. Factors such as decades-high inflation, crushing student debt, and job insecurity further compound the difficulties faced by millennials.
Leading expert Carol Sigelman, a professor of social psychology at George Washington University, acknowledges the challenging economic landscape for young adults, stating that We’re in an economy where it’s harder to live independently. This sentiment is echoed by Census data, which reports that nearly 16 percent of millennials aged 26-41 are living with one or both of their parents.
California is particularly affected by this trend, with four out of the top five cities experiencing the highest number of millennials returning home located in the state. Exorbitant housing prices in California, where the median single-family home price hovers around $830,000, are a major contributing factor.
Riverside, California has the highest share of millennials living at home, with nearly 30 percent, followed closely by Brownsville, Texas, at 27.4 percent. Other cities in California including Stockton, Los Angeles, and Modesto also make it to the top of the list. The data from the California Association of Realtors reveals that fewer than one in five Californians can afford a median-priced existing single-family home.
Conversely, Springfield, Missouri has the lowest percentage of millennials living with parents, standing at just 6.2 percent. It is considered a more affordable state, with a median home price around $159,000.
The Harris Poll conducted for Bloomberg shows that 40 percent of respondents are living at home to save money, while 30 percent cannot afford to live on their own. Other factors that contribute to this living situation include a need to pay down debt (19 percent) and job loss (10 percent).
The conditions experienced by young adults today bear similarities to those witnessed in the aftermath of the 2008 financial crisis, where many millennials opted to live at home due to a shaky housing market. The COVID-19 pandemic and subsequent lockdowns have only intensified this issue, with the share of young adults living with parents or grandparents reaching a record high of nearly 50 percent in 2020.
Additionally, recent college graduates face significant challenges in entering the job market, with higher levels of unemployment compared to the overall population. Industries heavily impacted by layoffs, such as tech, consulting, finance, and media, have deterred new graduates pursuing these positions. As a result, societal attitudes towards young people living at home have shifted, as it is no longer seen as a sign of immaturity, but rather a necessary step in managing expenses and saving for the future.
The data and anecdotes from individuals showcase the widespread financial struggles faced by millennials across the United States. The rising costs of housing, coupled with job insecurity and mounting student debt, create significant barriers for young adults striving to achieve independence. As this trend continues, policymakers and stakeholders must address these challenges to ensure that the American Dream remains within reach for future generations.
