Why are a record number of American adults living with their parents?

A record number of Americans under 35, approximately 33%, have returned to living with their parents due to prohibitive living costs, with most being employed and contributing to household expenses. High housing prices, with median sales prices for single-family homes reaching $434,300 and projected to hit $1 million by 2050, coupled with rising mortgage rates and rents, make independent living unaffordable. Additional burdens include significant student loan debt and job market challenges, including AI replacing young workers, forcing many to seek refuge in their family homes to save money.

• A record 25.2 million (33%) of Americans under 35 are living back at home.
• Around 70% of young adults living at home are employed and contribute to household expenses.
• The median sales price for a single-family home has drastically increased from under $40,000 in 1975 to approximately $434,300, with projections to reach $1 million by 2050.
• Mortgage rates over 6% have pushed the income needed to afford a median-priced home to over $120,000.
• Renting an apartment also faces high costs, with a two-room apartment averaging $2,500 per month.
• Americans over 55 control 73% of wealth, while those 55 and younger control only 27%.
• Student loan debt averages $29,550 to $43,000 for bachelor’s degrees and over $102,000 for graduate degrees.
• Job cuts in US factories are near their highest levels since 2009, with AI technology impacting young and entry-level workers.
• Young Americans are returning home out of necessity to save money and cope with an expensive and unpredictable market.