For many, when it rains, it pours, and many new and young adults got dealt a bad hand at the outset of the pandemic, when lockdowns eliminated many of their service-related jobs, drained their savings, and ultimately forced them to move back home.
But things over the last two years have gotten better; lockdowns are over, a vaccine is readily available, and jobs have since returned. However, the majority of those that moved back home in the early months of the pandemic have yet to move out again.
According to a new survey commissioned by LendingTree (and conducted by Qualtrics), 32% of all millennials and Gen Zers moved back home with their parents during the pandemic; two-thirds of those that moved home still remain.
Three-in-10 Gen Zers (now aged 18-25) moved home in order to save money the survey found, followed by 18% of younger millennials (now aged 26-34) and 17% of older millennials (ages 35-41).
Looking deeper, the younger age groups were found to be the most likely to move back out—14% of younger millennials have moved out, followed by 13% of Gen Zers , and 8% of older millennials.
Ten percent indicated that they are still considering moving home to save money. The 35- to 41-year-old group is the most adamant about avoiding a move back under their parents’ roof (67%), followed by those ages 26 to 34 (56%) and those 18 to 25 (49%).
Gen Zers and millennials indicated two main reasons for moving home: 51% said it was out of necessity, for the other 49% 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, LendingTree senior economist.
Younger people still working in entry-level positions may not have the cash resources to overcome the financial stressors of inflation, according to Channel.
But for those that moved home, what did they do? The top two answers were to pay down debt (39%), and to save for a down payment (31%). For others that moved home, they invested (23%), allowed them to take a new job (16%), or to save for a major life event (10%).
Other high-level takeaways from the report include:
- Nearly a third (32%) of millennials and Gen Zers moved back home with their parents during the pandemic, and most still live there. Two-thirds of young adults who moved back home remain with their parents. Slightly more than half (51%) of those who moved home say it was out of necessity.
- Young adults who moved in with their parents during the pandemic are focusing on paying down debt and saving for a home. Of those who moved back home, 39% say they’ve been able to pay down debt, while 31% are focusing on saving for a down payment. And of those who’ve since moved out, nearly 3 in 10 purchased a home. But whether they bought or rented, 71% would only return home if they had no other option.
- Living at home isn’t a dating deal breaker. 45% of millennials and Gen Zers say they’d date someone living with their parents, and an additional 38% would consider it. Only 17% flat-out refuse.
- 85% of parents would let their children move back in as adults or have previously done so, and most (73%) wouldn’t charge them rent. However, more than half say their kids would need to get a job, help pay for groceries and other household bills and assist with chores like cooking and cleaning.
- The percentage of adults ages 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, just 5.3% of these adults live with their parents.
Click here to view the report in its entirety.