In a society that has long celebrated the journey from the nest to independence, a staggering shift has taken place as a recent Yardi data report has unveiled that 68% of Generation Z adults are opting to stay in multigenerational households, contrary to the time-honoured tradition of flying the nest. What’s more, the millennial generation isn’t far behind, with 20% still residing in their parental homes. This has raised questions about the economic, social and familial dynamics at play in modern America.
The data, based on the analysis of IPUMS data, reveals that approximately 14 million millennials and 23 million zoomers share a household with at least one family member. These numbers represent the largest generational shares across all age groups. Of the 51 million people living in multigenerational households in the US today, eight million are Gen X and six million are baby boomers.
Furthermore, it seems that many millennials and Gen Z-ers (or zoomers, if you like) living at home don’t foresee a change anytime soon. The report found that over 40% of millennials (47%) and zoomers (41%) expect to continue sharing their home with someone else for at least another two years. Surprisingly, 14% of millennials anticipate living in a shared household for at least ten years, while zoomers are somewhat more optimistic with only 6% envisioning the same arrangement into their adulthood.
The factors driving multigenerational household trend
The report highlights that young adults may be choosing to remain at home for a variety of reasons, primarily revolving around financial or health-related circumstances. The data shows that the typical millennial living with a family member at the age of 32 shares their home with three or four other people and is likely to be employed in industries like food services, construction or education.
Comparing these findings to previous generations, it becomes evident that millennials and zoomers are slower to leave the nest. For instance, 18% of baby boomers and 17% of Gen X individuals were living with their parents at the same age as today’s average millennials. Gen Z also faces challenges, with 68% of them still living at home by the age of 22, surpassing the rates of their predecessors.
This discrepancy between generations can be attributed to several factors. Younger generations may find it more appealing to continue living in their parental homes to save money on expenses like childcare, utility bills, rent, or future down payments. On the other hand, there's also a growing trend of millennials and 'zoomers' choosing to stay home to care for family members, reflecting changing societal dynamics.
When looking at regional trends, California stands out as the state with the highest number of millennials and zoomers living in multigenerational households. West Coast metros dominate the list of areas with the largest shares of multigenerational households. In Los Angeles, approximately 35% of the nearly three million millennials live with family members, and for Gen Z, it's a striking 81% out of roughly 1.3 million. The high cost of living in Los Angeles, which is 51% above the national average, explains why many young adults find it challenging to leave home.
Interestingly, Raleigh, North Carolina, tops the list as the number one place for zoomers in multigenerational households, with 87% of around 178,000 zoomers still living with family members in 2022. Following closely, California's Riverside metro area takes second place for both generations. Approximately 35% of nearly one million millennials and 85% of around 460,000 zoomers have yet to leave the nest.
The third spot is shared by the metro areas of New York and Providence, Rhode Island. Millennials make up 28% of multigenerational households in the Big Apple, while Providence leans more toward zoomers. Baltimore and Washington DC, two East Coast metro areas, are also popular among both generations. In Baltimore, 27% of Gen Y live with family members, and in DC, a staggering 81% of Gen Z adults remain at home. The cost of living remains a significant factor in these areas, with Baltimore's cost of living 8% above the national average and Washington DC soaring to 52% above.
The brighter side of shared living
On the flip side, some metro areas offer a more favourable environment for younger generations to leave the parental home. Contrary to the belief that the pandemic has increased the number of adults living with their parents, the data shows a different reality. In over 20 of the largest US cities, the number of millennials and zoomers living in multigenerational households has been decreasing over the past five years, with many of them beginning to move out on their own. Notably, one of the most significant declines is observed in Cincinnati, with 67% fewer millennials and 60% fewer zoomers living with family members compared to 2018.
In the case of Gen Z, Milwaukee, Wisconsin, takes the crown when it comes to young adults leaving their parental home, with 62% fewer zoomers living in multigenerational households now than five years ago. Similarly, the share of millennials in multigenerational households in Nashville, Tennessee, during the past five years has decreased by 65%. The situation is equally promising for those in the Raleigh area, with a 62% decrease in the number of millennials in multigenerational households since five years ago.
While there are promising trends, certain metro areas and demographics are experiencing a rise in multigenerational living. Richmond, Virginia, has witnessed a 15% increase in the number of millennials living in multigenerational households and a 2% increase in zoomers compared with five years ago. In a similar vein, Louisville, Kentucky, has experienced a similar increase, with a 21% rise for millennials and a 24% rise for zoomers.
Buffalo, New York, has seen more modest increases with a 6% rise for Millennials and a 2% rise for zoomers in multigenerational living, while Denver, Colorado, noticed a 9% increase in the number of zoomers living with relatives.
As the data unveils the complex nature of multigenerational households, it becomes clear that the decision to leave the nest is influenced by factors such as employment, cost of living and personal preference.
[Read more: Multigenerational living: A growing trend shaped by family bonds and financial realities]
