The trend of young adults delaying independence and staying in their parents' homes can be explained by several factors.

• Approximately one-third of American adults aged 18 to 34 reside with at least one parent.
• A 2024 survey from Bank of America reveals that more than half of Gen Z adults feel they don't earn enough to achieve their desired lifestyle due to the high cost of living.
• A 2022 survey found that over 36% of Americans believe that an increase in young adults living with their parents is detrimental to society.

According to U.S. Census Bureau data, about one-third of American adults aged 18 to 34 reside with their parents.

Despite a temporary increase in young adults returning home or staying with their parents in their late 20s and 30s due to the pandemic, the numbers have generally remained stable in recent years.

Between 2005 and 2015, the most recent increase in the percentage of 18- to 34-year-olds residing with their parents was observed, according to Census Bureau data from the pre-pandemic era.

During the Great Recession and after it, there were numerous media narratives about millennials' excessive consumption of avocado toast, according to Joanne Hsu, a research associate professor at the University of Michigan who co-authored a 2015 study on "boomerang" kids for the Federal Reserve.

Approximately 28% of credit card users are still paying off their holiday debt from last year.

According to Hsu, the reason for the escalation of young adults not leaving or returning to the nest is the belief that it has become increasingly difficult for them to cope with shocks.

Economic shocks are major and unforeseen occurrences that upset financial equilibrium and markets, resulting in repercussions on families' income, employment, and debt burdens. The 2008 financial crisis, the Great Recession, and the pandemic are all instances of economic shocks.

A 2024 survey from Bank of America reveals that more than half of Gen Z adults feel they don't earn enough to live the life they desire due to the high cost of living. Additionally, a substantial portion of millennials and Gen Z adults lack emergency savings.

'Why rent and give my money to someone else?'

In the summer of 2019, Victoria Franklin, 27, returned to her mother's home following her college graduation in search of a job in business administration.

"Franklin ended up bartending and waitressing until October 2019, where he got his first offer. He admitted that it took a little longer than he expected."

She landed a job in her field in New York City, despite having to commute for two hours from her mother's home on the Jersey Shore.

"Franklin said, "I had planned to move into the city in six months to be nearer to my job. However, the pandemic disrupted those plans.""

After switching to a fully remote job in fall 2023, Franklin opted to remain living at her mom's house.

"Why should I rent and give my money to someone else when I can start owning?" Franklin questioned.

Franklin stated that she saves between 40% and 50% of her income, with a significant portion going towards a down payment on a house.

Experts warn that while residing with parents can offer personal financial advantages, it may have a detrimental impact on the economy.

"Hsu stated that what is beneficial for an individual or a family may not necessarily benefit the entire economy. He added that forming households can significantly boost consumer spending."

In a 2019 paper, the Federal Reserve estimated that young adults who leave their parents' home would spend an additional $13,000 annually on expenses like housing, food, and transportation.

The trend of young adults living with their parents is continuing, and it has implications for the economy.