A Record 25 Million Young Americans Are Still Living at Home

The current co-residence rate of 33% remains near the 2020 all-time high, marking a departure from historical norms. If early 2000s living patterns held, 4.86 million fewer young adults would be residing with their parents today. Instead, the combination of a national median home price of $430,000—up 34.4% since 2019—and soaring rents has created a bottleneck in household formation. This deficit is rooted in a long-term underproduction of housing, with a current shortage of approximately 4 million homes.

Hannah Jones, senior economist at Realtor.com, emphasizes that the issue is not a failure of the labor market. Among adults aged 25 to 34, roughly 70% are employed, and a significant portion holds four-year degrees. The data suggests that the dream of the 'empty nest' is being deferred by math rather than a lack of ambition. As the typical age of a first-time homebuyer climbs toward 40, this generation faces a compounding disadvantage: every year spent in a childhood bedroom is a year of wealth accumulation lost, further widening the gap between current market reality and traditional milestones.