More young adults are still living with their parents and not branching out on their own, and that could have a long-term, negative impact to their finances, according to a new study from the Urban Institute. Researchers found there is no long-term advantage financially for young adults who live with their parents.
The share of young adults aged 25 to 34 who live with their parents rose from nearly 12 percent in 2000 to 22 percent in 2017. Young adults who stayed in their parents’ home longer did not end up buying more expensive homes or have lower mortgage debts later on than those young adults who moved out earlier, the study showed. Researchers say this suggests that “living with parents does not better position young adults for home ownership, a critical source of future wealth, and may have negative long-term consequences for independent household formation.”