Number of Young Adults Living at Home Jumps 6.3% in 10 Years

More young people are living with their parents due to high housing costs, reports Rohan Shah in Fortune. Today, about 1.5 million or 6.3 percent more Americans under 35 live at home than ten years ago. 

Over the past decade, urban rents have climbed about 4% per year, while wages for full-time workers have increased by only 0.6% annually. That means it’s harder than ever to live in a big city on the typical salary — especially if you’re a new graduate without much work experience.

This is largely due to an inadequate housing supply in the places it’s needed most. As Shah points out, most cities restrict development (or make it prohibitively expensive) through land use and zoning regulations. By contrast, Austin, Texas, which has significantly relaxed its zoning codes in the last few years, has seen a boom in construction and a drop of as much as 22 percent in rents. In Austin, just 6 percent of working adults live with their parents. In Los Angeles, that number is 20 percent. Even in nearby San Antonio, Texas, 14 percent of young adults live with their parents.

Shah outlines the potential benefits and drawbacks of living with parents. People can save money on rent and save up to buy a home. “Indeed, homeownership rates among those 25 to 34 have risen slightly since 2016.” However, the arrangement can also hamper social relations and offer less access to good jobs. “It’s possible high rents translate into high barriers to adulthood, too.”