Young Adults Living with Parents Are Not Moving Out

Young Adults Staying in Parental Homes as Rental Costs and Mortgage Rates Soar

Rental affordability has hit record lows, mortgage rates remain high, and “excess” pandemic-era savings have dried up. These factors have stalled the post-pandemic trend of young adults moving out of their parents’ homes. According to the National Association of Home Builders (NAHB) analysis of the 2023 American Community Survey (ACS) Public Use Microdata Sample (PUMS), the share of 25-34-year-olds living with parents or in-laws remained above 19% in 2023, nearly unchanged from 2022.

While this percentage is the second-lowest since 2011, it remains elevated compared to historical norms. Southern and Northeastern states report some of the highest rates of young adults staying in parental homes, underscoring the impact of rising housing costs.

The Impact on First-Time Homebuyers and Housing Demand

Young adults aged 25 to 34 traditionally account for about half of all first-time homebuyers. As a result, a significant portion of this age group choosing to remain in their parents' homes has major implications for household formation and overall housing demand.

• 19.2% of young adults in this age group—roughly 8.5 million people—lived with parents in 2023

• By comparison, only 12% (4.6 million) lived with parents in 2000

• The peak was in 2017-2018, when 22% (9.7 million) of young adults were still living with parents

States with the Highest and Lowest Shares of Young Adults Living with Parents

While the national average stands at 19.2%, the numbers vary widely across states.

Highest Shares (Over 25%)

Young adults are most likely to remain in parental homes in high-cost coastal states, where housing affordability is a major challenge:

• California – 26.5%

• New Jersey – 26.3%

• Hawaii – 25.2%

Other states with above-average rates include:

• Delaware – 23.2%

• Maryland – 22.7%

• Florida – 22.4%

• New York – 21.8%

Lowest Shares (Under 10%)

In contrast, several Midwestern and Central U.S. states have the lowest percentages of young adults living with parents:

• North Dakota – 5% (Lowest in the nation)

• South Dakota – 7%

• District of Columbia – 7.5%

• Nebraska – 8.4%

• Iowa – 8.5%

• Wyoming – 9.6%

Why Are More Young Adults Staying with Parents?

The high cost of housing remains the primary driver behind this trend, especially in expensive coastal cities. Statistical analysis confirms that states with higher shares of cost-burdened renters and homeowners—those spending 30% or more of their income on housing—also have higher shares of young adults living with parents.

• Rental costs alone account for half of the state-to-state variation in young adults staying in parental homes

• Multigenerational living is also a factor, particularly in Southern states with higher Hispanic populations

However, once housing cost burdens are factored in, ethnicity does not have additional explanatory power in this trend.

The Bottom Line

Housing affordability remains a major barrier to independence for millions of young adults. Until rental costs ease and mortgage rates become more manageable, the share of 25-34-year-olds staying in parental homes is likely to remain elevated, impacting household formation, first-time homebuyer activity, and broader housing market trends.

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