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Nearly Half of Americans Age 18 to 29 Live With Their Parents

Nearly Half of Americans Age 18 to 29 Live With Their Parents

Nearly half of all young adults in the US ages 18 to 29 live with their parents, but it’s not just an excuse to save on rent. 

This trend has been growing for decades, but accelerated in 2020 at the height of the pandemic when 49.5 percent of Americans ages 18 to 29 moved back in with their parents. In the three years since, 48 percent of Americans ages 18 to 29 are still living with their parents, according to a new report from Morgan Stanley.

While many young adults shared that saving money was the main reason for living at home, it isn’t just to build up their savings account. Many young adults living with their parents are able to free up their budgets from daily necessities, allowing them to have more fun with their income. Instead of spending it on rent and groceries, many spend their paychecks on discretionary items like travel, entertainment and luxury goods.

Saving money for fun items is only one of the reasons young adults haven’t left home yet. A team of analysts for Morgan Stanley found that rising rental costs were the top contributing factor in deciding whether or not to live with parents. While four out of 10 millennials living at home pay their parents rent, nearly half say they are charged less than $500 per month. For comparison, the national median monthly rent of $2,007, meaning adults living at home are able to save four times as much per month.

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