A record number of young adults moved back home during the pandemic. With high rents and flexibility of remote work, many young adults ages 25-34 chose to live back at home with their family. In fact, in 2020 the percentage of young adults living with their parents hit a high of nearly 18%. For context, historically that number tends to be less than 10%.
It seems that moving home allowed these young adults a financial boost that they would likely not have otherwise had. It allowed them to save more, pay down existing debt, work on their credit scores, and level out their debt-to-income-ratio.
Of course, living at home may not be an option for some, and it is likely not an ideal long-term scenario for many people. But as we resume life in a post-pandemic world, this has certainly tipped the scales for many young adults, allowing them the opportunity to enter the housing marker much sooner than they would have been able to otherwise.
As I have mentioned in past articles that I am a proponent for kids staying home longer in general. Why move out at 18 just to rack up debt? Live at home until you are 25 and you are setting yourself up for financial success, less debt, and it overall helps to boost the economy by getting financially healthy young adults into the market.
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