Few dream of living with their parents into adulthood, but it’s a reality for many.
An average of 11.8% of working adults still live with their parents, a new study by LendingTree found. The analysis of 50 major US metros revealed where adult children are less likely to leave the nest. Sunny — and expensive — cities in California and Florida stood out.
Matt Schulz, LendingTree’s chief consumer finance analyst, told The Post that the results were a clear “sign of the times.”
“In previous generations, moving back in with mom and dad might have been a sign of defeat or failure, but it’s not really seen that way now,” Schulz said. “People are much more practical, and people see the value in spending a little time with their parents.”
More than one in five working adults in Riverside, Calif. live with their parents, according to the study. Nearby Los Angeles is a close second at 20% of adults, followed by Miami at 19.8%.
The data, drawn from the 2018 and 2023 US Census Bureau American Community Surveys, reveal a mixture of economic motivators for adults between the ages of 25 to 40 to stay at home.
In Riverside, a prohibitively high cost of living likely motivates adults to stay under their parents’ roof and save, Schulz said. Meanwhile, in cities like Detroit, the 15.6% of grown-ups still living with their parents may feel the pressures of low wages and limited job opportunities.
On the flip side, metros with fewer pricing extremes and steadily increasing housing supply allow for more empty nesters, and kids with their own places. Hint: They’re the places that grew most during COVID-19.
Austin, Texas; Raleigh, NC; and Denver have the lowest rates of adults living at home, ranging between 5.8% in Austin to 7% in Denver. Schulz attributed the highly independent adult populations of these cities to booming development and high purchasing power.
“It’s really hard to overstate the importance of cost of living in terms of where people live,” Schulz said. “And also having that room to grow.”
Rates of parent-adult child cohabitation actually fell 8.3% between the study’s range of 2018 and 2023. Only 13 metros saw increases, with a 22.1% increase in Las Vegas leading the charge.
“One really significant thing that happened was the growth of remote work,” Schulz said. “Maybe people were able to move someplace a little cheaper, and that might have afforded them the ability to move out.”
The nearly 12% of working American adults who live with mom and dad are no basement-dwelling deadbeats. One third of them hold a bachelor’s degree or higher, according to the analysis. They tend to earn less than their more independent peers — a good reason to stay home and save up.
After all, mom’s cooking isn’t the only reason to keep bunking in your childhood bed. Working adults living at home, on average, would need to allocate more than 40% of their monthly income to rent a one-bedroom apartment, according to the study. That number rises all the way up to 54.3% in Tampa.
At the end of the day, living with one’s folks can provide greater financial security and a serious savings boost, but it’s not always ideal. Schulz said the ultimate goal for at-home adults should be to put away as much money as they possibly can to position themselves for the best possible flight from the nest.
“It is really important that people take advantage of the time they have living with their parents, financially,” Schulz said. “But it’s also important to not get so comfortable and settled that they end up overstaying their welcome.” As much as your parents love you, they probably don’t necessarily want you to be 50 years old and still having to live with them.”
Leave a Reply