The COVID-19 pandemic threw long term education and housing plans into flux for many Americans and the Millennials and Gen Zers who moved back in with their parents during the crisis are still feeling the ramifications.
A new survey from LendingTree shows the majority of individuals who moved back in with their parents during the pandemic still live there, more than two years after COVID-19 first struck the U.S.
Findings are based on survey responses from more than 1,300 U.S. parents, Millennials and Gen Zers recorded between July 26-29, 2022. Millennials were defined as those aged 26 through 41, while Gen Zers were those aged 18 through 25.
Results show 32 percent of these young Americans moved back in with their parents during the pandemic, two-thirds of whom continue to live there. Just over half of these individuals said the move was out of necessity, as many focus on paying off their debt and saving to purchase a home.
Twenty-three percent of those surveyed said they moved back in with their parents to save up for retirement.
Individuals aged 24 to 40 are most likely to live with their parents in Hawai’i, New Jersey and Florida. High costs of living in both New Jersey and Hawai’i likely contributed to this finding, researchers said, while “adult children living at home in Florida, a state where the cost of living is lower, may be at home to care for an older parent.”
Researchers said that “as of 2019, Florida had the second-highest population of residents 65 or older, with more than 1 in 5 (20.9 percent) in that age demographic statewide.”
In comparison, the co-living arrangement was least likely in North Dakota, Nebraska and South Dakota, which could be due in part to low unemployment rates in these states.
On the parents’ end, over 80 percent said they would let children move back in as adults or have already done so, and 73 percent said they would not charge their children rent if they came back. But the majority of parents said they would expect help with household chores and for children to be employed.
The findings come alongside reports documenting challenges young people face when it comes to buying a home, while rising inflation, stagnant wages and higher rents throughout the country all compound the financial hardships plaguing young Americans.
“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,” said Jacob Channel, LendingTree senior economist, in a statement. Younger individuals working in entry-level jobs may also not have enough cash flow to sustain moving out of their parents’ home, Channel added.
Upon moving out of their parents’ homes, 73 percent of respondents said they were more likely to rent than purchase a home.
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