Millennials Trapped in Rental Purgatory: Soaring Housing Costs Ground Their Flight from the Nest

Why can’t today’s young adults leave the nest? Blame high housing costs

Nearly one-third of Gen Z adults, those born between 1996 and 2012, are living with their parents due to the soaring home prices and high rents, which makes it challenging for them to afford their own space.

The year 2023 was the least affordable year for homebuying in over a decade.

This situation can put a financial strain on parents supporting their grown children, especially when their own financial security is at risk.

However, there can also be economic benefits to multigenerational households.

Pew Research Center found that 25% of young adults now live in multigenerational households, up from 9% five decades ago.

This is primarily driven by financial reasons, including student debt and housing costs.

The combination of housing prices, mortgage rates, stagnant wages, and student loan debt makes it challenging for young adults to establish financial independence.

Consequently, more than half of Gen Z adults and millennials rely on their parents for financial support.

This can create financial difficulties for parents, especially those whose own financial security is uncertain.

Despite the potential financial strain, Pew found that multigenerational households can have economic benefits, and those living in such arrangements are less likely to be financially vulnerable.

Nevertheless, experts emphasize the importance of shared financial responsibilities and open communication within these households to ensure a mutually beneficial living arrangement.