Young Adults Who Returned Home During the Pandemic Are Now Moving Out
Over the past two years, an elevated share of young adults moved back into their childhood homes to regroup and save money during a costly pandemic, but according to the National Association of Realtors, many are now moving out. The share of young adults aged 25 to 34 living at home grew to its highest share recorded since 1960 in 2020, reaching a total of 17.8%. In 2022, a smaller but still historically high 15.6% of young adults lived at home with family.
Many of those who opted to live with parents, relatives, or friends cited remote work flexibility, virtual education, and high housing costs as the biggest drivers of a shared household, but as affordability improves, young adults are flying the nest at a faster pace.
It is possible that moving home allowed these young adults a financial boost that they would not have had otherwise. It could have translated into savings, paying down existing debt, and working on their credit score and debt-to-income ratio. Among student debt holders, 6% cited that the pandemic allowed them to pay off their student debt earlier or get closer to paying it off directly because they moved in with family and avoided having to pay rent. For some, it may have even allowed them the ability to save for a downpayment on a home.