More Young Adults Are Living With Their Parents—and It Could Be Hurting the Economy

Core Insights - The percentage of young adults aged 25 to 34 living with their parents has increased from 11% in 2005 to 16% in 2023, indicating a shift in living arrangements among this demographic [1][6] - Financial reasons are speculated to be the primary factor keeping young adults at home, as the costs of renting and homeownership have risen significantly [2][6] Economic Impact - Young adults who remain living at home tend to spend less than their peers who have moved out, which can negatively affect overall consumer spending and, consequently, GDP growth [2][4] - A report from Oxford Economics estimates that the rising number of young adults living at home has depressed consumer spending by approximately $12 to $13 billion, equating to about 0.1% of total consumption [5] Employment Concerns - The unemployment rate for recent college graduates aged 22 to 27 stands at 4.8%, higher than the 4% rate for all workers, suggesting challenges in the job market for this age group [3]