- Nearly 25% of millennials are living with their parents, per a new survey.
- Half of them have moved in over the last year as inflation surged.
- The pandemic drew many young people home in 2020, and now poor finances are pushing them back again.
It looks like some millennials may be stuck living with their parents forever.
In 2020, millions of young Americans moved home to ride out the pandemic. While some moved out in 2021 as COVID restrictions eased, many have moved right back home again over the past year.
That's according to a new PropertyManagement.com survey of 1,200 Americans between the ages of 26 and 41, the millennial generation, according to Pew Research. Nearly one in four millennials said they were living with their parents as of December 1, and half of them moved in over the past year.
51% of millennials surveyed said "saving money" was among the key reasons they made the move, while 39% said they "couldn't afford rent."
"Until I see rent become a reasonable price, which honestly I'm not convinced is ever going to go down, I plan on living at home," 28-year-old Sojourner White, who moved home in 2020 and hasn't left, previously told Insider.
While rents are beginning to fall in some cities, they remain an obstacle for many millennials. 15% of the renters surveyed, for instance, said they spend more than half of their after-tax income on rent. These housing costs come as inflation continues to outpace wage increases for most workers, leading many to take on credit card debt to meet expenses.
It's left many millennials to conclude moving in with their parents is their best option. 31% of 25 to 29-year-olds were living in multigenerational households as of October 2021, according to a Pew Research survey, a practice that's surged over the last five decades due to rising costs of living and other factors.
Millennials want to live on their own, but some say they're not making enough to do so
Despite moving home, 38% of the millennials surveyed said they still pay some rent, with half of them sending their parents less than $500 per month.
And while nearly a third said they enjoy living with their parents — and that this was among the reasons they moved back home — most are eager to move out as soon as they can afford to.
91% of those who moved home in the past year said they would be very or somewhat likely to move out once they started earning more money. Among this group, only 22% reported making over $40,000 per year — roughly the median US income.
But even if these millennials eventually move out, some may find themselves living at home again soon. That's because as their parents age, they may decide to move home to care for them — and help them avoid some of the steep costs of elder care. 31% of millennials said caring for their parents was a factor in their decision to move home, and as the Boomer generation ages, even more millennials may find themselves making the same choice.
But for now, with a recession looming next year, even more millennials faced with job losses and rising costs could make the decision to move home. But the transition might not be easy for everyone.
Not only will millennial renters be subject to their apartment leases, but if they do retain their jobs, they may have to live near their employer. While some Americans can work from anywhere, the vast majority don't have this flexibility. As of June, only 15% of US employees were working fully remotely, while 30% were hybrid and 55% were on-site full-time.
Are you a millennial who's willing to share your story of moving in with your parents over the past year? Reach out to this reporter at jzinkula@businessinsider.com.
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