One in three adults under 35 in the U.S. lived with their parents in 2025, a record 25.2 million people, according to Realtor.com data, driven by a housing affordability crisis that has reshaped life milestones for a generation. The trend reflects a deepening supply shortage, stagnant wage growth, and rising costs that have delayed homeownership and independent living for young adults, even those with jobs and college degrees.
Supply Shortage and Cost Drivers
The U.S. faces a 4 million-unit housing gap, with entry-level homes particularly scarce, according to Realtor.com. This shortage has been years in the making, exacerbated by construction slowdowns after the 2008 financial crisis. Government regulations add nearly $132,000 to the cost of new homes, builders say, while the national median home price hit $430,000 in 2025—a 34.4% rise since 2019. Meanwhile, median asking rent climbed to $1,673, up 17.9% over the same period.
“This is a supply story, not an employment story,” said Hannah Jones, a senior economist at Realtor.com, noting that 70% of 25- to 34-year-olds living with parents are employed. “Every adult still in a childhood bedroom is a household not formed, a lease unsigned, a starter home unpurchased.”
Realtor.com’s analysis highlights that the typical first-time buyer is now 40, a shift tied to market constraints. “The math of a market that hasn’t built enough” has pushed homebuying further into adulthood, Jones said. The delay also has long-term financial consequences, as each year spent at home delays equity-building, the report noted.
Employment and Debt Challenges
Despite steady employment, many young adults remain at home due to debt and housing costs. A 2025 report from the National Association of Realtors (NAR) found that first-time buyers now make up just 21% of the market, the lowest since 1981. Jessica Lautz, NAR’s deputy chief economist, cited “very limited affordable housing inventory” and “high rents, student loan debt, car loans, credit cards” as barriers to homeownership.
Young adults carry more debt than previous generations, with student loans, auto loans, and credit card balances weighing on early-career earnings. “The rise in college attendance over the past 25 years likely plays a role too: More widespread student debt may be constraining what an entry-level salary can actually buy in terms of independent living,” Jones said.
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Local data underscores the regional disparities. In Tampa, the median home price is now over $440,000, up 30% to 50% in five years, according to Redfin. High borrowing costs and climbing rents further strain budgets, making it harder for first-time buyers to enter the market.
Long-Term Implications for Families and the Market
The trend has broader economic and social impacts. Parents may delay retirement or downsize their homes, while the housing market faces tighter supply due to reduced turnover. “Fewer adults engaging with the starter home market means there is less turnover in that market, Jones said, tightening an already limited supply and deepening the affordable housing struggle for young people.
The Guardian’s analysis noted that 40% of recent college graduates are underemployed, working jobs that don’t require a degree. Inflation, which hit a 3-year high of 4.2% in May 2026, has also eroded wage gains, further complicating efforts to move out. “This shifting trend just speaks to how much housing affordability and lack thereof is impacting people across the age spectrum,” Jones said.
Despite these challenges, there are signs of progress. Median rents have fallen for nearly three years, and home price growth has slowed in many regions. “Things are moving in the right direction,” Jones said, though “progress has been slow.”
Projections and Policy Considerations
Experts warn that the housing crisis will worsen unless supply increases. The National Association of Realtors projects the national median home price will hit $1 million by 2050, just as millennials reach retirement age. “Essentially, in about 25 years the national median home price will be a million dollars,” said NAR chief economist Lawrence Yun, highlighting the urgency of addressing supply constraints.
Policy solutions remain debated. Marcus Lemonis, a business leader, argues that removing “red tape” alone won’t solve the crisis, as permits and inspections are necessary for safety. Builders emphasize that regulatory costs add nearly $132,000 to new homes, suggesting that streamlined processes and increased construction could ease affordability.
For young adults, the delay in independent living has lasting consequences. “Twenty-five million adults living with their parents represents a generation of latent demand the market hasn’t absorbed,” Jones said. As affordability improves or more homes are built, millions of young adults could enter the market, potentially driving future demand and reshaping the housing landscape.
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