Nearly 60% of young adults eventually return to their hometowns, and they don’t view this as a failure; instead, they see it as a smart financial decision.
Recent research from a storage solutions company indicates that the journey to independent living is becoming more of a back-and-forth process. This study involved a survey of 981 Gen Z and young Millennial respondents.
“Boomerangs are now more common than ever,” notes Maggie Stankiewicz, a senior content manager.
The findings reveal that 58% of young people who moved out have returned home, with 15% doing so more than once.
Importantly, these young adults are often unashamed of moving back. In contrast to previous generations that felt societal pressure not to live with parents after a certain age, today’s “children” embrace the situation.
They Moved Home — And I’m Sorry
The survey showed that 75% of young adults view living with family or in shared accommodations as a “smart financial strategy” rather than a setback. About 26% explicitly stated they moved back to save money.
A significant majority, 62%, believe there’s less stigma attached to returning home today compared to earlier times, with 63% feeling less personal shame about their living arrangements.
Other financial considerations for young adults include waiting for an appropriate income level (38%), reaching a certain saving target (23%), and paying off existing debts (13%).
This trend of moving back is especially pronounced in high-cost areas.
According to the latest U.S. Census data, 33% of young people aged 18-34 live with their parents, with rates soaring in pricier states: New Jersey (44.1%), Connecticut (41.3%), California (39.1%), Maryland (38.5%), and Florida (36.6%).
Jenna Hoyas, a real estate agent in San Diego, notes that the median rent is around $3,100, while home prices soar to about $933,325—far above national averages.
“In markets like Southern California, families are making strategic financial choices based on long-term objectives rather than societal norms,” she explains.
There’s an increasing trend for homebuyers to seek properties that accommodate adult children—think private entrances, guest suites, or layouts friendly to multigenerational living. Sometimes, grandparents even move in when the younger generation finally can leave home.
“Many Gen Z adults face unique financial hurdles unlike those of previous generations,” Hoyas adds. “Given high rents, escalating home prices, and looming student debt, returning home is indeed a sensible financial move for many families.”
Supporting this, a survey by a financial services company indicated that nearly 30% of young adults (ages 18-35) have gone back to their hometowns at least once. Interestingly, 32% admit to never having left.
Among the primary reasons for returning home, 34% aimed to save for a down payment, 22% wanted to build an emergency fund, and 13% focused on paying off student loans.
Yet, 30% of young adults, even having saved over a third for a down payment, still have no plans to buy due to high costs.
It’s not surprising that low housing prices (45%) drive many young people back home, overshadowing factors like unemployment (36%).
“Returning home isn’t seen as a failure anymore; often, it’s considered a smart financial choice,” agrees Katrina Romantowski, founder of a multifamily housing development firm.
Romantowski shared her own experience, having had her three adult children stay with her to save money and plan their next moves. She emphasizes that homes need to adapt to support multigenerational living without forced conformity to traditional ownership norms.
What About Your Parents?
For young adults who struggle to afford their own place, moving back in with parents can be a logical step, yet it may not always favor the parents financially.
Almost half of these parents have reported financial strain, and many are willing to cut personal expenses (43%) or delay major purchases (36%) to help their adult children.
“When deciding to bring adult children back home, it’s crucial to clarify the ‘why,'” advises Gene Elder, a financial consultant. “Are you aiming to save for a house or manage debt? This time at home can be pivotal.”
In essence, parents are often prepared to make short-term sacrifices for the long-term benefits of their kids.
Communication is key to preventing this arrangement from straining family dynamics. Open discussions from the start and regular check-ins can significantly help.
Interestingly, 55% of parents anticipate that this living situation may continue for at least a year.
However, there seems to be a disconnect; one in four “kids” feel it’s unlikely they’ll move out within the next five to ten years.
