Rising rents and stagnant wages have pushed more young adults to live with their parents – up 6.3% in a decade – as affordability and housing supply tighten.

NEW YORK — A growing share of young adults are moving back home instead of striking out on their own.

Nearly 1.5 million more adults under age 35 live with their parents compared to 10 years ago, which is a 6.3% increase that is more than double the growth rate for the young adult population overall.

Independent living has become more challenging as wages have barely risen, while home prices and rents have significantly increased. In fact, wages rose by just 0.6% annually for full-time workers, while urban rents rose 4% annually in the last 10 years.

Economists point to restrictive zoning and limited housing supply as the key drivers of the housing squeeze. More young adults are living with their parents to save for a down payment, but the situation also could lead to delays in family milestones, limited social opportunities and slower career growth.

Experts say expanding housing supply and improving affordability could remove one of the biggest barriers to adulthood for a generation priced out of independence.

Source: Fortune (10/08/25) Shah, Rohan

© Copyright 2025 Smithbucklin