Jan 27, 2024 - News

Why some Twin Cities millennials are still living with their parents

Share of millennials living with their parents, 2022
Data: U.S. Census via IPUMS; Chart: Erin Davis/Axios Visuals

Over 11% of Twin Cities millennials lived with their parents in 2022, Axios' Erin Davis reports from the latest census figures.

  • That's compared with the national average share of 15.8%.

Why it matters: While rent growth here lags other big metros, many younger people across Minnesota and the nation are struggling to swing it and returning to their childhood bedrooms.

  • 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.

Zoom in: Faribault parent Sharon Wilson's 29-year-old son and his wife live in her remodeled basement apartment.

  • "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.

Lakeville parent Craig Weber has two working Gen Zers at home, both a year out of school.

  • One is paying off their student loans, plus saving for a house. The other is saving money to invest in a side business, Weber says.
  • Weber's kids pay their other bills. "My wife and I are fine with the arrangements, as long as they are working and focused on the future with goals," he tells Axios.

Reality check: Some millennials are still 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 Z's homeownership rate stagnated at slightly over 26%.

What we're watching: Those who leave the nest might find rent is more expensive than it was a few years ago, even as price increases slowed last year.

  • It's one reason why renters are feeling badly about their finances, according to the Axios Vibes survey by The Harris Poll.

Go deeper: Multigenerational living is up 1M households in last decade, here's which states

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