High Rent and Job Losses Forced 1 in 8 Millennials to Move Back in With Their Parents This Year
Rental prices across the country rose dramatically in 2022 and are expected to continue rising into at least the first half of 2023. In order to see how inflation and high rent have affected their ability to live independently and potentially become homeowners, PropertyManagement.com surveyed 1,200 millennials (those aged 26-41) in December 2022.
- 1 in 4 millennials are currently living with their parents
- 1 in 8 millennials moved back in with their parents this year
- Many cited high rent, money concerns, and job losses as reasons why
- Of those who couldn’t afford rent, 91% would move out if they made more money
- Despite wanting to own a home, 44% can only afford a 3.5% mortgage rate or less
- 15% spend more than the recommended 50% net income on rent
More Than Half of Millennials Living With Their Parents Returned in the Past Year
According to the survey, one in four millennials are currently living with their parents. Twenty-two percent live with their parents in their parents’ home, while 4% say their parents live with them in their home.
Of those living in their parents’ home, 55% have moved back home within the past year. When asked why they’ve moved back, the top reasons given by respondents were to save money (51%) and that they couldn’t afford their rent (39%).
Majority Would Move Out if They Could Afford Rent
Of those who moved back within the past year because they couldn’t afford rent, 91% say they would be ‘very’ (68%) or ‘somewhat’ (23%) likely to move out of their parents’ house if they made more money.
Of this group, 22% report making over $40,000 per year, which is right around the median personal income in the United States.
4 in 10 Millennials Living at Home Live in a Multi-Generational Household
In addition to living with their parents, 39% of millennials living at home say members of their extended family also live with them. The most common reason is the family can’t afford to live separately (41%).
38% Say Their Parents Charge Them Rent
Nearly four in ten millennials living at home say that their parents charge them rent to stay with them. The largest group, at 48%, say they are charged less than $500 per month.
Majority of Millennial Renters Would Like to Own a Home, But Affording One is Uncertain
Of millennials not living with their parents, 39% are homeowners and 56% are renters. Nineteen percent of renters say they plan to buy a home when their current lease is up, while 77% plan to continue renting, either in their current apartment or in another.
Of this 77%, 95% say they would like to own a home in the future. The largest group (32%) would ideally like to buy a home within the next one to two years. However, more than one-third say they are ‘somewhat’ (26%) or ‘very’ (8%) unlikely to be able to buy a house within their ideal timeframe.
4 in 10 Renters Can Only Afford a 3.5% Mortgage Rate or Less
Perhaps more concerningly, 24% of millennial renters who would like to own a home say they do not know at which mortgage rate they would be able to afford a house, while 44% say they would only be able to afford a house at a 3.5% mortgage rate or less. Current mortgage rates are hovering between 6% and 7%.
1 in 6 Millennial Renters Spend 50%+ of Their Income on Rent
Commonly held wisdom states that 50% of a person’s net income (or 30% gross) should be spent on rent. However, 15% of millennial renters report spending more than that to pay their rent.
Renters reported a number of actions they have taken to be able to afford rent within the past year, including picking up extra gig work (49%), sleeping on a couch (16%), having too many roommates (12%), and sharing a bedroom with someone who is not a romantic partner (11%).
This survey was commissioned by PropertyManagement.com and conducted online by the survey platform Pollfish on December 1, 2022. In total, 1,200 participants in the U.S. were surveyed. All participants had to pass through demographic filters to ensure they were between the ages of 26 and 41. The survey used a convenience sampling method, and to avoid bias from this component Pollfish employs Random Device Engagement (RDE) to ensure both random and organic surveying. Learn more about Pollfish’s survey methodology.