Millions Of American Youngsters Forced To Move Back Into Parents' Home As Rents Become Unaffordable

Soaring rents have forced millions of young Americans to move back into their parents¡¯ homes this year, according to a new survey.

About one in four millennials are living with their parents as on December 1st this year, according to the survey of 1,200 people by US based market research firm Pollfish for the website PropertyManagement.com. That¡¯s equivalent to about 18 million people between the ages of 26 and 41. More than half said they moved back in with family in the past one year, as per Bloomberg report.

39% Couldn't Afford Rent

51% of millennials surveyed said "saving money" was among the key reasons they made the move, while 39% said they "couldn't afford rent."

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"Until I see rent become a reasonable price, which honestly I'm not convinced is ever going to go down, I plan on living at home," 28-year-old Sojourner White had told Business Insider as per its report.

While rents are beginning to fall in some cities, they remain an obstacle for many millennials. 15% of the renters surveyed said they spend more than half of their after-tax income on rent. These housing costs come as inflation continues to outpace wage increases for most workers, leading many to take on credit card debt to meet expenses, the report mentioned.

It's left many millennials to conclude moving in with their parents is their best option. And while nearly a third said they enjoy living with their parents ¡ª and that this was among the reasons they moved back home ¡ª most are eager to move out as soon as they can afford to.

Also Read: Why Most Rent Agreements In India Are Only For 11 Months

91% Likely To Move Out When Income Rises

As per the report, 91% of those who moved home in the past year said they would be very or somewhat likely to move out once they started earning more money. Among this group, only 22% reported making over $40,000 per year, i.e. roughly the median US income.

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But even if these millennials eventually move out, some may find themselves living at home again soon. That's because as their parents age, they may decide to move home to care for them ¡ª and help them avoid some of the steep costs of elder care. 31% of millennials said caring for their parents was a factor in their decision to move home, and as the Boomer generation ages, even more millennials may find themselves making the same choice.

But for now, with the fears of a global recession in 2023 deepening, even more millennials are faced with job losses and rising costs, which could make the decision to move home even more prominent.

Also Read: How To Invest In Real Estate 'Without' Actually Buying A Property

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