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Nearly a third of Gen Z is living at home (and they plan to stay)


An aerial view of Hastings-on-Hudson, N.Y., on Dec. 29, 2020, with the New York City skyline at upper left and the New Jersey Palisades at right.

By Anna P. Kambhampaty


This year’s rapid inflation rates have meant higher prices for virtually everything, including rent, food and even partying. So what comes next may not be much of a surprise: Nearly a third of Americans between the ages of 18 and 25 — part of what is collectively known as Gen Z — live at home with their parents or other relatives, according to a new study, and they considered it a long-term housing solution.


The analysis comes courtesy of Credit Karma, a personal-finance consultancy, which surveyed 1,022 young adults in the United States online between June 10 and June 15 of this year.


From the very beginning of the pandemic, flocks of young Americans were moving back home. A 2020 analysis from Zillow found that about 2.7 million adults in the United States moved in with a parent or grandparent in March and April of that year.


But what’s worth noting from the recent Credit Karma study is how living at home with family is now often viewed as a permanent housing solution, even in the midst of a strong jobs market, said Colleen McCreary, a consumer financial advocate and chief people officer at Credit Karma.


“The pandemic had a big effect here. That age group was likely sent home from college, or didn’t have the job and income security to have their own place,” she said.


For those who have made it out of their childhood bedroom, 32% are spending roughly half of their monthly income on rent or mortgage, the study found. “That’s a huge amount of money, especially for a population that doesn’t make a lot of money,” McCreary said. “On average, a zoomer’s household income is under $50,000.”


She typically advises that no more than 20% of income should go toward housing. But 28% of survey respondents reported that they’re unable to save any money at the moment.

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