A new LendingTree survey [1] of U.S. Millennials and Gen Zers found that a whopping 57% live in their hometowns and that 62% of young Americans live near their parents—including those who don’t live where they grew up.
“Making ends meet in today’s economy can be tough for anyone, but it’s often especially challenging for young people,” Jacob Channel, LendingTree Senior Economist.
Here’s a deeper look at the numbers and the reasons behind them.
Key Findings:
- Many young Americans are staying in the hometown where they grew up. Some 57% of Millennials and Gen Zers live in their hometowns, while another 16% live near their parents but outside their hometowns. Notably, men are 28% more likely to live in their hometowns than women (64% versus 50%). Among those who didn’t leave home, 42% felt obligated to stay near family, 36% stayed out of convenience, and 33% couldn’t afford to move.
- For some, family comes first. 68% of young Americans say it’s important for them to be near family, with Gen Zers (71%) agreeing more than Millennials (67%). Among those who say it’s important, 60% simply enjoy being close by, while some 13% are caring for aging parents, and 12% enjoy a sense of community. Beyond being close to their family, 41% of young Americans live close to their significant other’s parents.
- Among young parents, built-in child care is a plus. Some 73% of Millennial and Gen Z parents of children younger than 18 say it’s important for them to be near family, with 21% citing child care support as their top reason. Those without kids still have child care in mind, as 52% plan to live near their parents or family when they have a child.
- Remote work has brought new possibilities to many young Americans’ living situations. Almost half (46%) of young Americans say remote work has made them consider moving. Separately, approximately 47% of respondents who don’t live in their hometowns would consider moving back. When asked why they moved away, an estimated 36% wanted to try something new, roughly 29% sought economic opportunities, and 29% moved for a significant other.
[2]Home Sweet.. Hometown?
More than half (57%) of Americans ages 18 to 42 live where they grew up, while an even greater percentage live near their parents (62%), including those who live outside their hometowns.
LendingTree Highlights:
- 46% of young Americans live in their hometowns near their parents
- 24% don’t live in their hometowns and aren’t near their parents
- 16% don’t live in their hometowns but are near their parents
- 8% live in their hometowns but not near their parents
- 3% don’t live in their hometowns and don’t have parents
- 3% live in their hometowns and don’t have parents
Elevated home prices, high mortgage interest rates, and inflation—effects of the COVID-19 pandemic—impact younger generations especially.
According to an August 2022 LendingTree survey [3] on post-pandemic living arrangements, two-thirds of young adults who moved back home during the pandemic still lived with their parents.
“The younger you are, the less likely you are to have a significant amount of savings or a high-paying job,” said Channel. “From a financial perspective, living on your own without relying on your parents for help is harder than it was just a few short years ago.”
Staying close to Mom and Dad provides a layer of support for young people, even if they’re not getting direct financial help from their parents.
The study finds men are more likely to live in their hometowns than women.
Men are 28% more likely to live in their hometowns than women—64% versus 50%. And they’re more likely to live near their parents, whether in or outside their hometowns—68% versus 58%.
Gen Zers (ages 18 to 26) are more likely to live in their hometowns than Millennials (ages 27 to 42)—64% versus 53%. In addition, as expected because of their younger ages, a higher percentage of Gen Zers live near their parents, including those that live outside their hometowns—70% versus 59% of Millennials.
Why are Millennials and Gen Zers staying close to home?
When asked why they remained close to their hometowns, 42% of respondents cited a sense of obligation to stay close to family.
An estimated 68% of young Americans value living near family. Living close to family is a top priority for younger adults—68% of respondents say it’s important to them.
Men agree slightly more than women (69% versus 67%), and more Gen Zers (71%) say it’s essential than millennials (67%).
[4]
Higher-earning individuals are more likely to say living near family is important—74% of respondents with household incomes of $100,000 or more annually say they value it, versus 64% of those earning less than $35,000.
When asked why living near family is important, 60% say they enjoy being close by. Other reasons include caring for aging parents (13%) and having a sense of community (12%).
The high percentage of Millennials and Gen Zers wanting to be close to family could be another byproduct of the pandemic.
“The lockdowns during the pandemic probably brought many families closer together, as they were able to spend more time with one another than they otherwise could have,” said Channel. “Even if they lived elsewhere before, realizing how much they liked being near their family may have resulted in more people opting to move closer to their parents.”
Roughly 47% of young Americans surveyed who live outside their hometowns would consider moving back.
Many millennials and Gen Zers who don’t live in their hometowns say they would consider returning — 47%. Gen Zers are more likely to return than millennials (51% versus 46%), as are men than women (55% versus 42%). When asked why they moved away from their hometowns, the top reason was to try something new.
To read the full report, including more data, charts, and methodology, click here [1].