Adult Children Increasingly Move Back Home to Combat Housing Costs

A growing number of adult children in their 20s and 30s are moving back in with their parents [1, 2, 3].

This shift reflects a broader economic struggle as young adults face prohibitive housing costs and significant financial pressure. By returning home, these individuals are utilizing multigenerational living as a financial loophole to reduce personal spending and share household expenses [4, 5].

The trend is widespread across the U.S. and has also been noted in New Zealand [6, 7]. In the United States, an estimated 25 million young adults are participating in this move ^[4].

Many of these adults are choosing to return home to save money amid a volatile economy. This decision allows them to avoid the high cost of independent rentals or mortgages, expenses that have become increasingly difficult to manage for those early in their careers [1, 2, 3].

While previous generations may have viewed living with parents as a sign of failure, current economic conditions have reframed the move. The ability to pool resources within a single household provides a safety net that is often unavailable through traditional employment or government assistance [4, 5].

This trend has accelerated throughout the 2020s as the gap between average wages and housing prices continues to widen [2, 6]. The result is a reconfiguration of the traditional nuclear family structure in favor of more sustainable, shared living arrangements [1, 3].