Brief
More Millennials and Gen Zers Stay Home as Housing Costs Rise
The share of 20‑to‑39‑year‑olds living with parents has climbed to 22.4%, a sharp increase from 15% in 1980, according to housing research firm Zelman.
By Felo News Desk · Published
In a trend that mirrors Europe’s long‑standing multigenerational households, the proportion of U.S. adults in their twenties and thirties living with family has risen to 22.4% in 2026, up from 15% in 1980, a housing research firm reported on Thursday. The data, released by Zelman, a subsidiary of Walker & Dunlop, attributes the shift to a cost‑of‑living crisis and stagnant wage growth.
“Now since rates have been going up and affordability remains very stretched, we’re seeing multi‑generational living increase,” said Ivy Zelman, co‑founder and executive vice president of Zelman, during a roundtable attended by Fortune. “We assume that it’s going to stay fairly stable as we continue into the second half of the decade.”
Zelman’s analysis shows that only 44% of 20‑to‑39‑year‑olds could afford the median local rent, and that 42% of Gen Z renters report having no money for leisure. The firm also notes that 58% of renters cite saving money as the top reason for staying home, compared with 41% of homeowners.
Housing affordability is compounded by high land prices and limited supply of denser housing, Zelman said. “Because of America’s limitations in building denser housing—like high land prices—affordability will remain a major issue for younger Americans,” the firm added.
Older generations hold a disproportionate share of housing wealth. Baby boomers and Gen Xers own a second home up to 20 times more often than 30‑something adults, and their net worth averages $1.4 million for those aged 70 and above, compared with about $100,000 for Gen Z and millennials under 40.
While the report highlights the financial strain, it also points to a cultural shift. “We also believe that there’s a secular shift in how people are living,” Zelman said. “When you look at young adults today that are happy or content living with their parents, the negative stigma is really no longer prevalent. We are going to start looking a lot more like Europe: multi‑generational living.”
BCG’s Center for Macroeconomics echoed the affordability theme, noting that buying a house now requires “a little fortune” and that furniture costs have tripled over the past decade. The report concluded that, despite these challenges, Gen Z and millennials are still making generational progress in careers, income and wealth.
Key facts
- 22.4% of Gen Z and millennials live with parents in 2026 (fortune.com)
- Only 44% of 20‑to‑39‑year‑olds can afford median local rent (fortune.com)
- Baby boomers and Gen Xers own a second home up to 20 times more often than 30‑something adults (fortune.com)
Background
This article builds on earlier Felo coverage of generational housing trends, including a 2026‑09‑27 piece on Gen Z urging millennials to retire from corporate jobs and a 2026‑09‑19 guide to home glow‑up hacks.
Why it matters
The trend signals a shift in American family dynamics and housing policy priorities as younger adults face affordability challenges.
What happens next
Zelman predicts the 22.4% figure will remain stable through 2030.
Sources
- [1] fortune.com — originally reported as “‘We are going to start looking a lot more like Europe’: Millennials are living at home into their 30s, signaling a major shift”
