High Housing Costs Force a Third of Young Adults to Live with Parents, Data Shows

The Return to the Nest

The trend of the empty nest filling back up is on the rise. High housing costs are forcing millions of young adults to postpone independence and move back in with their parents. According to recent Realtor.com data, in 2025, approximately 25.2 million adults under 35 lived with a parent. This equates to about one in three people in that age group.

Highly Educated yet Unable to Afford Housing

Hannah Jones, senior economist at Realtor.com, shares, “The adults living with their parents today are largely employed, and many hold college degrees. What’s holding them back isn’t a lack of qualifications, but rather, a lack of affordable housing. This is a supply story, not an employment story.”

The Housing Supply Shortage

The deficiency in housing supply has been years in the making. The U.S. suffers a shortage of nearly 4 million homes, with entry-level properties being especially scarce. The gap has broadened since construction slowed down following the 2008 financial crisis, as reported by Realtor.com.

Employment vs Owning a Home

About 70% of 25- to 34-year-olds living with their parents have jobs. In 2000, about one in nine employed adults in their late 20s lived at home. By 2025, that share had climbed to almost one in seven.

The Rising Cost of Moving Out

For many young Americans, the cost of moving out has significantly escalated. As of recent data, the national median home listing price is $430,000, up 34.4% from 2019, while the median asking rent has climbed to $1,673, up 17.9% over the same period.

Delay in Independent Living May Translate into Future Housing Demand

The delay in moving into independent living could potentially translate into a surge of future housing demand. As affordability improves or more homes are constructed, millions of young adults who postponed renting or buying could enter the market, according to Realtor.com reports.

Long-term Financial Consequences of Living at Home

The delay in moving out can also have long-term financial implications. Each year spent living at home can delay a young adult’s ability to build housing equity, Realtor.com noted.

Future Housing Market Projections

The outlook for the housing market doesn’t seem to be easing anytime soon. According to new projections by Lawrence Yun, the National Association of Realtors (NAR) chief economist, the national median home price is projected to hit $1 million by 2050 — just as millennials approach the traditional retirement age.

Contributing report by Kristen Altus from FOX Business.