Young adults have always made up a sizable portion of first-time homebuyers, but this has changed as homes have become more expensive
Jan. 21, 2025
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As home prices increase, more young people are choosing to live at home with their parents than to purchase a home.
Although young people have for many years made up a decent portion of the nation’s first-time homebuyers, that is changing as housing costs rise. As home prices continue to soar, the share of adults ages 25 to 34 living with their parents or parents-in-law is growing. According to the National Association of Home Builders’ Eye On Housing blog, 19% of adults in this age group were living with parents as of the most recent data in 2023. In contrast, less than 12% of young adults ages 25 to 34 lived with their parents in 2000. However, the share of adults living with parents has declined in recent years. The share peaked between 2017 and 2018 at 22% when more than 9.7 million adults ages 25 to 34 lived with their parents.
Traditionally, young adults ages 25 to 34 make up around half of all first-time homebuyers. Consequently, the number and share of young adults in this age group that choose to stay with their parents, or parents-in-law, has profound implications for household formation, housing demand, and the housing market.Read more
