A record 25.2 million adults under 35 lived with their parents in 2025, driven by saving money as the primary reason more young adults move back home amid rising housing costs and limited affordability. This represents nearly 1 in 3 young adults and surpasses pandemic-era highs, according to new data from Realtor.com.
The shift marks a fundamental change in how young adults approach independence. A SpareFoot survey cited by Realtor.com found that 58% of young adults—or 3 in 5—who moved away from home later move back, including 15% who have done so multiple times. Yet unlike previous generations, these adults don’t see the move as a failure; they view it as financially savvy.
According to the SpareFoot survey, 26% of young adults explicitly moved home to save money. Other top reasons included waiting for the right income level (38%), reaching a specific savings goal (23%), and paying off existing debt (13%). Three-quarters of respondents said living with family or in transitional housing is a “smart financial strategy,” not a setback.
The stigma around moving back home has largely faded. The survey found that 62% of respondents said the harsh stigma compared with previous generations has diminished, and 63% said they personally no longer feel embarrassed or judged about their living situation.
Housing Costs Drive the Trend
The primary factor pushing young adults back home is unaffordable housing. In 2025, the median home price reached $430,000, up 34.4% from 2019, while the median asking rent climbed to $1,673, up 17.9% over the same period, according to Realtor.com research. The affordability crisis is most acute in expensive states: 44.1% of young adults in New Jersey live with parents, followed by Connecticut (41.3%), California (39.1%), Maryland (38.5%), and Florida (36.6%).
Surprisingly, roughly 70% of 25- to 34-year-olds living with parents are employed, according to Realtor.com’s senior economist Hannah Jones. Among 25- to 29-year-olds, 71% work; among 30- to 34-year-olds, 68% are employed. This challenges the narrative that young adults living at home are simply waiting to find jobs. Instead, their income level, debt load, or the cost of housing in their market is keeping them home despite steady employment.
Northwestern Mutual’s 2025 Consumer Sentiment survey found that more than half (54%) of adult Gen Zers (ages 18–28) are living with their parents or family, with just 11% owning their own home and 27% renting. The median home price nationwide has reached five times the median household income, according to the Joint Center for Housing Studies at Harvard University, nearing historic highs of unaffordability. By comparison, in the 1990s, the median home cost just 3.2 times median income.
Student loan debt and other financial obligations compound the challenge. Young adults carry less total debt than older borrowers, but their balances are more heavily concentrated in student loans, auto loans, and credit cards—obligations that weigh on early-career earnings and limit what entry-level salaries can actually buy in terms of independent living.
However, living at home doesn’t automatically guarantee substantial savings. According to Pew Research Center data, 72% of young adults living with parents contribute financially to the household in some way. This includes 65% who help pay for groceries, utilities, or other household expenses, and 46% who contribute toward rent or the mortgage. Many young adults are also helping with household chores (64%), errands and rides (47%), and caregiving (24%), meaning they’re sharing the burden of household management rather than simply enjoying a free ride.
Sources
- Realtor.com — 25.2 million adults under 35 living with parents in 2025; 58% of young adults who moved away later return; median home price $430,000 (up 34.4% from 2019); median rent $1,673 (up 17.9% from 2019); 70% of 25-34 year-olds living with parents are employed; state-by-state co-residence rates
- SpareFoot survey (via Realtor.com) — 26% moved home to save money; 75% view it as smart financial strategy; 62% say stigma has faded; 63% no longer feel embarrassed
- Northwestern Mutual 2025 Consumer Sentiment Survey — 54% of adult Gen Z (18-28) live with parents; 11% own homes; 27% rent
- Joint Center for Housing Studies, Harvard University — Median home price five times median household income in 2024; comparison to 1990s when ratio was 3.2x
- Pew Research Center — 72% of young adults living with parents contribute financially; 65% help with groceries/utilities; 46% contribute to rent/mortgage
