During the pandemic, there was a large influx of young adults who moved back in with their parents during lockdowns, or simply stayed there if they already were. There were various reasons for this — some include not wanting to be away from them while isolating, losing their job or transitioning to work-from-home, or graduating from college — but regardless of the reason, many of them were able to spend the last couple of years saving up money for a down payment. Now these young adults are looking to buy, in many cases for the first time, as they were probably renting before.
The share of adults age 25-34 living at home has been steadily increasing since 2003, when it was 10%. Back then, that age group was entirely Generation X. Now in 2022, it’s almost entirely Millennials, and the youngest among them are in Generation Z. But 2020 was actually the peak year, despite being the year of the sharpest increase. It has since decreased from 17.8% in 2020 to 15.6% in 2022, about the same level it was at in 2015. Based on historical trends, it’s expected that the number will drop back down to somewhere in the 8-12% range at some point, but this is unclear given that the steady increase was already in progress long before the pandemic.