A record-breaking number of Americans under age 35 are opting to live with their parents rather than navigate the increasingly difficult financial landscape of independent living. According to a June report from Realtor.com based on recent Census figures, more than 25 million young adults resided in their parental homes in 2025. This figure represents the highest level on record, surpassing even the peak numbers observed during the COVID-19 pandemic when many young people moved back home to avoid city crowds and quarantine restrictions.
Hannah Jones, a senior economist at Realtor.com, noted that one in three individuals aged 18 to 34 is currently living at home. While there is often a social stigma attached to living with parents well into adulthood, experts emphasize that this trend is primarily driven by economic necessity rather than a lack of employment. In fact, 7 out of 10 adults aged 25 to 34 living with parents are currently employed, suggesting that the issue is rooted in housing affordability rather than the job market.
The financial barriers to homeownership have intensified significantly in recent years. Realtor.com data shows the median home list price at $430,000, which is 34% higher than 2019 levels, while the median asking rent has climbed 18% to $1,673. Furthermore, Bankrate reports that inflation-adjusted mortgage payments have jumped from $1,408 in 2020 to $2,207 in 2024, a result of both rising home prices and elevated interest rates. For many young adults, staying at home serves as a strategic way to cut costs and save toward the goal of eventually purchasing a property.
This shift is causing broader ripples in the housing market. The National Association of Realtors reported that first-time buyers accounted for only 21% of all purchases in 2025, a record low, while the average age of a first-time buyer has reached an all-time high of 40. Krista Westrick-Payne, assistant director of the National Center for Family & Marriage Research at Bowling Green State University, points out that the modern market often requires two household incomes to afford a home. Consequently, those living alone miss out on significant economic stability.
The trend is also linked to changing demographic patterns, including the postponement of marriage. Because married couples are more likely to own or rent their own homes, the delay in marriage contributes to higher rates of adult children living at home. Men in their early 30s are currently nearly twice as likely as women to live with their parents, at a ratio of 16% to 9%. Beyond financial reasons, researchers have identified an overlooked factor: the role of younger adults as caregivers. As the baby boomer generation ages, many parents now rely on their adult children for assistance with daily tasks, creating a mutually beneficial living arrangement that is often absent from the public conversation.
Young adults face a challenging job market. But most under-35 adults who live with parents are not there for lack of a job. Among adults aged 25-34 who cohabit with parents, 7 in 10 are employed, Realtor.com reported.
Prohibitive housing costs aren’t just trapping younger adults in parental homes. More broadly, spiraling mortgage and rent costs have hindered Gen Zers and younger millennials from forming independent households, researchers say.
