In 2022, despite record inflation, increased interest rates, and housing affordability challenges, young adults persistently moved out of parental homes. The NAHB’s analysis of the 2022 American Community Survey (ACS) Public Use Microdata Sample (PUMS) revealed a decline in the share of young adults aged 25-34 living with parents or parents-in-law, now at 19.1%. This marks a decade low, signaling a positive trend towards greater independent living among young adults, continuing from the post-pandemic era.
According to the NAHB, traditionally, young adults ages 25 to 34 constitute around half of all first-time home buyers. Consequently, the number and share of young adults in this age group who choose to stay with their parents or parents-in-law has profound implications for household formation, housing demand and the housing market.
The share of adults ages 25 to 34 living with parents reached a peak of 22% in 2017-2018. Although a nearly three percentage point drop since then is a welcome development, the share remains elevated by historical standards, with almost one in five young adults in parental homes. Two decades ago, less than 12% of young adults, or 4.6 million, lived with their parents. The current share of 19.1% translates into 8.5 million of young adults living in the homes of their parents or parents-in-law.