The percentage of young adults living with their parents is on the increase. Research shows that 48% of Americans between the ages of 18 and 26 are living with their parents. This is a slight decrease from the peak recorded in 2020. During the height of the Covid-19 pandemic, more young adults moved back to their parent’s homes. Then, about 49.5% were living with their parents.
The Pew Research Center, USA Today, the University of Minnesota, and Morgan Stanley research revealed that the figure would likely stay within the current range for a while. In addition, a survey by Property Management shows that a quarter of those aged 26-41 live with their parents.
The cause of this trend is mainly associated with the desire for greater financial freedom. For example, 41% of people interviewed say they live with their parents to save money, while 39% say they cannot afford rent. Some say their parents charge them rent, but they are less than 20% of those interviewed. Many also tend to pay less than $500, which is less than one-third of what they would spend on average.
Another reason young adults live with their parents is to save up for higher education. They can save more towards their goal by cutting expenses like rent and household utilities. The aim for many is to reduce debt and have more discretionary income after graduating.
Living with parents means that young adults now have more disposable income. As a result, many choose to buy luxury goods and spend on things like vacations. Luxury brands appreciate this as their earnings stay on a steady incline. They are also changing parts of their images to appeal to their younger customers.
Parents also feel the effects of their adult children living at home. The need to cater to the adult children living with them puts a strain on some of them. It affects their finances and retirement plans. While some charge their children rent, the amount is usually much lower than the average rental prices in their area.
The trend is not unique to the US alone. Many countries are seeing adult children living with their parents. In countries like China, children may live with their parents until they marry. This will enable them to save up for their future independence and afford more luxury than they would if they had to foot more bills.
In the UK, 42% of young adults lived with their parents in 2021. Around that time, the Guardian reported that the import of luxury Swiss watches rose 31% year over year. British luxury brand, Burberry, reported an 11% increase in year-over-year sales, and so did other luxury brands within and outside the country.
There have been different attitudes to the phenomenon within and outside the US. People’s race, age, gender, and political inclinations influence their attitudes toward children living with their parents. More males, white adults, and Republican-leaning people in the US view it as wrong. More Asians and Blacks view it positively, while almost half of the respondents are indifferent. With less than a quarter of the respondents seeing adult children living with their parents as bad, the trend may continue well into the future.