Rising Trend: More People in Their Late 20s Living with Parents

Rising Trend: More People in Their Late 20s Living with Parents.

A recent conclusion by a prominent think tank suggests that the perception, or perhaps concern, regarding individuals in their twenties remaining in their parental homes is grounded in reality.

The Institute for Fiscal Studies (IFS) reports that the percentage of individuals aged 25 to 34 who continue to reside with their parents has risen by over one-third in the past two decades.

This trend of cohabitation with parents has been predominantly observed among men and those in their late twenties, according to the researchers.

The primary factors contributing to this shift are the escalating costs of renting and the increasing prices of housing.

Not Leaving The Nest

In 2006, approximately 13% of individuals in the UK aged 25 to 34 were residing with their parents.

By the previous year, this figure had risen to 18%, as reported by the IFS, an independent economic think tank.

This increase represents around 450,000 additional young adults remaining in the family home, with the rise particularly evident among those in their late 20s, according to researchers.

Among 25 to 34-year-olds, a higher percentage of men, at 23%, were living at home compared to women, who accounted for 15%.

The IFS noted that this age group has evolved over recent decades, becoming less likely to marry or have children. Additionally, there is greater ethnic diversity within this demographic, with UK-born young individuals of Bangladeshi and Indian descent being more inclined to live with their parents.

The highest rate of adult children living at home occurred during the pandemic, when over 20% of those aged 25 to 34 did so.

In the current, more stable environment, while parents may wish for their adult children to become independent, many young adults in their twenties express a desire to move out but find it financially challenging.

The IFS indicated that financial issues were a major obstacle, as increasing rents and property prices contributed to the ongoing trend.

While pursuing a master's degree in environmental science, Zach was motivated by the aspiration for a more fulfilling career. However, the prospect of renting independently was deemed impractical, as he remarked, "unless you want to live in a shoebox," and the idea of purchasing a home still appears unattainable.

"It's getting harder to save. It feels like there is no hope getting on the housing ladder in London," he said.

Danny McGuire, aged 33, resides with his parents in Warrington, Cheshire. He had previously lived independently, including a period spent overseas, but returned to the family home during the pandemic.

"It's quite a normal situation really," he told 5 Live Breakfast.

Danny, an employee of the local council, expressed his desire to live independently; however, he noted that he was left with an increasingly limited amount of disposable income each month to allocate towards saving for a home. He remarked that the rising prices made it challenging to accumulate sufficient funds for a deposit on his own property.

"Eventually you've got to make a real hard decision of, actually, do I save for longer or do I bite the bullet, move back home and try and save more money consistently?" he said.

Several of his friends received financial assistance from their parents for a deposit; however, Danny indicated that his family could not provide him with monetary support. Instead, they offered him accommodation, allowing him to save for his future.

He contributes to his parents by paying for rent and groceries, yet he manages to save substantial amounts of money each month, with the aspiration of purchasing his own home within the year.

Struggling To Save

The IFS determined that certain young individuals might achieve savings by residing at home. Approximately 14% had managed to save over £10,000 within a two-year timeframe, in contrast to an estimated 10% of young adults living in privately rented housing.

Nonetheless, this was not universally applicable due to the possibility of increased commuting expenses or because some had relocated as a result of financial challenges.

"For some, living with parents provides an opportunity to build up savings more quickly than if they were renting – which is an especially valuable advantage in high-cost places like London," said Bee Boileau, research economist at IFS and an author of the report.

"However, others are likely to be living at a parental home due to a bad shock of some kind – such as the end of a relationship or a redundancy – or simply because they cannot afford to live independently."

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The growing trend of young adults remaining in their parental homes highlights the financial strain faced by many in their late 20s. Despite aspirations for independence, the escalating cost of living, especially housing, has left many feeling trapped in a cycle of dependency.

This reliance on parental support can hinder personal growth, delay milestones like homeownership or starting families, and foster a sense of stagnation. While some manage to save by living at home, the broader societal impact of unaffordable housing is undeniable, perpetuating inequality and limiting opportunities for future generations to thrive independently.