For many, when it rains, it pours, and many new and young adults were roughed up at the start of the pandemic, when the shutdowns eliminated many of their service-related jobs, depleted their savings and eventually forced them to move back home.
But things over the past two years have improved; the shutdowns are over, a vaccine is readily available, and jobs have since returned. However, the majority of those who returned home during the first months of the pandemic have yet to move.
According to a new investigation commissioned by LendingTree (and conducted by Qualtrics), 32% of all millennials and Gen Z have returned home with their parents during the pandemic; two-thirds of those who moved are still there.
According to the survey, three in 10 Gen Zers (now aged 18-25) moved to save money, followed by 18% of millennials (now aged 26-34) and 17% of older millennials (35-41). ).
Looking deeper, the youngest age groups were found to be the most likely to move on: 14% of millennials moved, followed by 13% of Gen Z and 8% of older millennials .
Ten percent said they always considered moving to save money. Those aged 35 to 41 are the most adamant about avoiding returning to their parents’ roof (67%), followed by those aged 26 to 34 (56%) and those aged 18 to 25 (49%).
Gen Z and Millennials listed two main reasons for moving: 51% said it was out of necessity, while the remaining 49% said it was to save money.
“With inflation as high as it is and with rates rising, it can be difficult for anyone to make ends meet in today’s economy,” says Jacob Channel, senior economist at LendingTree.
According to Channel, young people still in entry-level positions may not have the financial resources to weather the financial stressors of inflation.
But for those who moved, what did they do? The top two responses were paying off debt (39%) and saving for a down payment (31%). For the others who moved, they invested (23%), allowed them to take a new job (16%) or save for a major life event (10%).
Other high-level takeaways from the report include:
- Nearly a third (32%) of millennials and Gen Z have returned home with their parents during the pandemic, and most still live there. Two-thirds of young adults who have moved stay with their parents. Just over half (51%) of those who moved say it was out of necessity.
- Young adults who moved in with their parents during the pandemic are focused on paying off debt and saving for a home. Of those who have moved, 39% say they have been able to pay off their debts, while 31% are focused on saving for a down payment. And of those who have since moved, nearly 3 in 10 have bought a home. But whether they bought or rented, 71% would only return home if they had no other choice.
- Living at home is not a deciding factor for dating. 45% of Millennials and Gen Z say they would date someone living with their parents, and an additional 38% would consider it. Only 17% categorically refuse.
- 85% of parents would let their children move in again as adults or have already done so, and most (73%) would not charge them rent. However, more than half say their children would need to find jobs, help pay for groceries and other household bills, and help with chores like cooking and cleaning.
- The percentage of adults aged 24 to 40 who live with their parents is above 20% in three states: Hawaii (21.6%), New Jersey (20.7%) and Florida (20.1%). Meanwhile, in North Dakota, only 5.3% of those adults live with their parents.
Click here to view the full report.