More young adults are living with their parents, particularly in the South and Northeast regions of the United States. MagnifyMoney, a brand within LendingTree, analyzed the 50 largest metros in the U.S. to pinpoint the largest portion of adults aged 25 to 40 who are still living with their parents.
“Moving out of your parents’ home has long been considered the ultimate rite of passage into full-fledged adulthood,” MagnifyMoney notes in its study. “But today’s young adults are more likely to live in a parents’ household—and to live with their parents for a longer period.”
This “failure to launch” phenomena may be due to several reasons, whether it be delays in marriage, unemployment, or financial hardships. The average unemployment rate of those who live at home is 8.6 percent—more than double the national average.
Men between the ages of 25 and 40 are more likely to live with their parents in every metro MagnifyMoney analyzed, except in Austin, Texas.
A recent study from the National Association of REALTORS® found that more households are multigenerational due to the rising number of adult children still living with their parents. That’s influencing homebuying decisions among Generation Xers, too, according to the 2019 Home Buyer and Seller Generational Trends study.
“The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents’ homes either out of necessity or an attempt to save money,” says Lawrence Yun, NAR chief economist. “While these multigenerational homes may not be what a majority of Americans expect out of homeownership, this method allows younger potential buyers the opportunity to gain their financial footing and transition into homeownership. In fact, younger millennials are the most likely to move directly out of their parents’ homes into homeownership, circumventing renting altogether.”
MagnifyMoney found that the 10 places where young adults are the most likely to still live with their parents are:
- Riverside, Calif.: 28.1% (percentage of adults aged 25 to 40 who live with their parents)
- Miami: 27.7%
- Los Angeles: 26.6%
- New York: 24.7%
- San Antonio: 23.2%
- New Orleans: 22.9%
- Philadelphia: 22.5%
- Providence, R.I.: 22.3%
- Baltimore: 22.1%
- Orlando, Fla.: 21.1%
On the other hand, some of the places where young adults are the least likely to be living back home are Minneapolis, Seattle, Denver, Indianapolis, Kansas City, Mo., and Raleigh, N.C., according to the study.
Source: “Places Where Adults Still Live With Their Parents,” MagnifyMoney.com (April 2, 2019)
