NEW YORK — Credit unions may want to tweak some of their marketing around lifestyles and generations, as living with parents into adulthood is becoming increasingly common as high housing costs, elevated rents and student debt reshape the traditional path to financial independence for younger Americans.
What was once widely viewed as a temporary setback or sign of failing to launch is now increasingly seen as a practical financial decision, the Wall Street Journal reported, with many young adults delaying independent living while they save money or recover from financial challenges.
According to the Federal Reserve’s latest Survey of Household Economics and Decisionmaking, 49% of adults under age 30 said they lived with a parent in 2025, up from 37% in 2019. Nearly one-third of those living at home were age 25 or older, the report observed.
Setting ‘Records’
The Journal said rising home prices, record apartment rents and student loan obligations have combined to make independent living increasingly difficult. The national median home price remains above $400,000, while rents in many metropolitan areas continue to set records.
A separate survey by financial services firm Thrivent found that 55% of young adults who moved back home cited financial necessity as the primary reason.
The trend is changing more than living arrangements, the publication reported. It is influencing decisions about marriage, family formation and home design, while prompting builders to construct more multigenerational housing and accessory dwelling units to accommodate adult children.
Seeking Relief in ADUs
States including California and New York have eased regulations governing accessory dwelling units, often called ADUs, as families seek affordable housing options for adult children or aging relatives.
The Journal reported that some homebuilders are seeing increased demand for detached backyard homes intended to provide younger adults with privacy while allowing them to remain on family property as they save for a home purchase.
Changing Attitudes
Social attitudes also appear to be changing.
Rather than hiding the arrangement, some young adults now openly discuss living with their parents on social media, where “stay-at-home daughter” and “stay-at-home son” content has attracted growing audiences.
Psychologist Laurence Steinberg of Temple University told the Wall Street Journal that multigenerational living became the dominant living arrangement for Americans ages 18 to 29 during the pandemic, and while some young adults have since moved out, many have remained at home because of continued affordability challenges.
The pandemic accelerated the trend. According to an analysis by the Pew Research Center, 52% of Americans ages 18 to 29 lived with at least one parent in mid-2020, the first time a majority of young adults had done so since the Great Depression.
New Household Expectations
The Journal reported that many families have adapted by establishing new household expectations, with adult children contributing through rent, household expenses, cooking, shopping or caregiving while parents adjust to sharing their homes longer than expected.
Real estate professionals interviewed by the newspaper said the trend is also delaying downsizing decisions for many older homeowners because adult children continue to occupy bedrooms that otherwise might no longer be needed.
‘Kind of Normal’
While many young adults say they would prefer to live independently, the combination of elevated housing costs and higher living expenses has made remaining at home an increasingly practical choice.
As one parent told the Journal, having adult children at home has become “kind of normal” in today’s housing market.
