The youngest millennials, now around 27 years old, have moved beyond the label of children. Despite reaching an age associated with independence and responsibility, a growing number of millennials are opting to return home and live with their parents. While this trend may seem unconventional to older generations, particularly the boomers, there appears to be a significant force compelling millennials to seek the familiarity of their parents’ homes.
According to a Bloomberg report, approximately one in four millennials currently reside with their parents. The question arises: what factors are contributing to this phenomenon?
1. Harsh Economic Times
The current post-COVID economy is rough for many people, and millennials who were building their lives are affected as much as most. Many millennials entered the job market during or after the global financial crisis, facing a difficult job market.
2. High Cost of Living
In many urban areas, the cost of living, especially housing, is significantly higher than in previous decades. This makes it challenging for young adults to afford to live on their own.
Going back home seems better than being homeless.
3. Student Loan Debt
Anyone who doesn’t have a student loan today must be among the luckiest and happiest people. Many aren’t that lucky, and the burden of student loan debt hinders millennials from saving for a down payment on a home or covering other living expenses.
4. There’s No Security in Jobs
More and more people are choosing unconventional jobs, such as working from home, and the gig economy is enormous. While this offers flexibility, it’s a temporary work scenario that often leads to job insecurity and irregular income.
This is making it difficult for millennials to commit to long-term financial commitments.
5. Delayed Marriage and Family Formation
Getting married and starting a family is a massive push for one to get out of their parent’s home and make a home of their home. However, some millennials are getting married and starting families later than previous generations, leading to a delay in establishing independent households.
Some choose not to get married and find no need to get their own place.
6. Changing Priorities
There’s an emphasis on maximizing experiences rather than purchases and “settling.”
Some millennials prioritize personal fulfillment, such as travel, over traditional markers of success like homeownership. They’d rather fly to the corner of the world for the experience than pay for a mortgage.
7. Lack of Affordable Housing
The Bloomberg report said about 15% of millennial renters spend more than half their after-tax income on rent.
These limited affordable housing options, especially in desirable urban areas, force millennials to live with their parents.
8. Caregiving Responsibilities
The Baby Boomers are the parents of millennials, and they require more and more care as they age, placing this responsibility on the millennials’ shoulders.
As more millennials take on caregiving responsibilities for aging parents, this is leading them to living together for mutual support.
9. Cultural Changes
There was a time when still living with your parents was frowned upon; we even made songs against it, but this is 2023.
Changing cultural attitudes toward living arrangements and family dynamics have influenced millennials’ decisions about living with their parents as more people get comfortable with being in their dad’s basement.
10. Mental Health Awareness
Mental health has become a massive topic in the recent past, and more people are open about taking care of their mental well-being. Sometimes, that looks like moving back to your parent’s house.
Millennials face mental health challenges, and living with a supportive family provides a support system during difficult times.
11. Covid Pandemic
It’s been three years since COVID struck, and yes, we’re still blaming the pandemic for many things, including this.
Significant job losses and a surge in housing costs resulted from the pandemic, affecting many millennials. This led to an unprecedented upheaval in living situations. Many are taking time in Mom’s spare bedroom to recover.
12. Savings and Financial Planning
Not everyone got kicked out at 18; some parents allowed their children to stay on as they worked to gain stability.
Some millennials choose to live with their parents as a strategic financial move, allowing them to save for future goals.
Hats off to parents who give this opportunity to their children.
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JayDee Vykoukal is a writer, author, mom, and Doctor of Physical Therapy. She has been writing about everything motherhood and health-related since 2018 when her first daughter was born, and she wanted to stay home. She loves to research new topics and fun facts with her kids to teach them about the world.