Why millennials are moving back home
Nearly 16% of U.S. millennials lived with their parents in 2022, per the latest census figures.
Why it matters: Younger people are increasingly struggling to swing high housing costs and returning to their childhood bedrooms or basements.
- The number of Americans aged 25–34 living at home has jumped over 87% in the past two decades, according to census data.
What's happening: Younger generations may be staying home to save on expenses like rent or a future down payment, says Adina Dragos, research analyst at RentCafe, an apartment search website.
- More young adults could also be choosing to care for family members, Dragos tells Axios.
What they're saying: Sharon Wilson's 29-year-old son and his wife live in her remodeled basement apartment in southern Minnesota.
- "The plan is for me to downsize and move downstairs, and they take over the upstairs" as they start a family, says Wilson, who tells Axios she's grateful to have family close after her husband died.
Commerce City, Colorado, parent Greg Francis has two Gen Z adults at home: a college student and a recent graduate.
- "He's way ahead of where I was at his age," Francis says of his older son, who pays a small rent but uses the bulk of his paychecks to pay down student debt and invest.
- The younger brother is staying home to avoid racking up student debt, and he'll continue living there after graduation.
Reality check: Plunging affordability hasn't stopped some millennials from buying homes, often with family help.
- Nearly 55% of millennials (those aged 27–42) owned a home in 2023, up from 52% in 2022, according to a new Redfin report.
- Meanwhile, adult Gen Zers' (those aged 19–26) homeownership rate stagnated at just over 26%.
- It's one reason why renters are feeling badly about their finances, according to the Axios Vibes survey by The Harris Poll.