Housing affordability drives rise in multi-generational living

Rising living costs and housing unaffordability are driving a significant increase in multi-generational living among Gen Z and Millennials. Data from housing research firm Zelman indicates that the proportion of adults in their 20s and 30s living at home has risen from approximately 15% in 1980 to 22.4% today.

Experts suggest this trend is fueled by a cost-of-living crisis, where only 44% of adults aged 20 to 39 can afford their local median rent. Ivy Zelman, cofounder of Zelman, notes that high land prices and limitations in building denser housing will likely keep affordability stretched through the end of the decade.

Beyond economics, a cultural shift is occurring as the stigma surrounding adult children living with parents diminishes. This movement toward multi-generational households mirrors living patterns commonly seen in Europe. While some view the trend as a ‘failure to launch,’ others argue it serves as a strategic financial tool for young adults to save money and establish themselves, provided they have a clear plan for independence.