In recent years, more young adults from Generation Z are choosing to live at home with their parents—and they’re doing so for good reasons. While the trend may still carry a bit of social stigma, it’s quickly becoming a financially savvy decision that reflects the realities of today’s economy. In this post, we’ll look at how many Gen Zers are living at home, why it’s often misunderstood, and how to make the most of the situation if you’re part of this growing group.
How Many Gen Z Adults Are Living at Home?
Let’s start with the numbers. According to recent data from Pew Research and the U.S. Census Bureau, about 68% of Gen Z adults (ages 18–25) are living with at least one parent. That’s a significant jump compared to previous generations at the same age. In fact, it’s the highest rate since the Great Depression.
The reasons behind this trend are complex. Rising housing costs, student debt, and a rapidly changing job market have all played a part. But despite these understandable factors, living at home is still often viewed negatively.
The Stigma: Why Do People Look Down on Living at Home?
For decades, moving out at 18—or after finishing college—was seen as a key milestone of adulthood. Popular media and social norms have long associated independence with success. So when someone stays home past a certain age, it’s easy for others to assume they’re lazy, unmotivated, or failing to “launch.”
Social media doesn’t help either. Many people only post highlight reels of their lives—glamorous apartments, solo travel, or career milestones—without sharing the behind-the-scenes financial sacrifices. This creates unrealistic expectations, especially for young adults trying to navigate a tough economy.
But the truth is, choosing to live at home can be a strategic move—not a sign of failure.
Why Living at Home Can Be a Smart Financial Move
Here’s why Gen Z may be onto something smart:
- Housing costs are soaring. Rent prices in many cities are unaffordable on an entry-level salary.
- Student loan debt is a major burden. Many graduates owe tens of thousands of dollars.
- The economy is unpredictable. With inflation, layoffs, and rising living expenses, financial stability takes longer to achieve.
- Living at home can offer breathing room. Instead of spending most of your paycheck on rent, you can build a solid financial foundation.
- Mental and emotional support matters. Being close to family can ease stress, especially during transitional phases.
In short, living at home isn’t delaying adulthood—it’s often a wise way to prepare for it.
5 Practical Financial Tips for Gen Z Living at Home
If you’re currently living with your parents, make the most of this opportunity with these smart strategies:
1. Set Clear Financial Goals
Decide what you want to achieve while you’re at home. Examples include:
- Saving $10,000
- Paying off credit card or student loan debt
- Building a three- to six-month emergency fund
Make your goals specific, measurable, and time-bound.
2. Pay Yourself First
Before spending, put a portion of your income into savings or investment accounts. Automate transfers to:
- A high-yield savings account
- A Roth IRA or 401(k)
- A brokerage account for long-term investing
3. Contribute to Household Costs
Even if your parents don’t expect it, offering to help with groceries, utilities, or a set rent amount builds trust and responsibility. It also helps you prepare for the financial obligations of living on your own later.
4. Build Credit Responsibly
Use a credit card for small, manageable purchases and pay the balance in full each month. You can also:
- Become an authorized user on a parent’s card
- Open a secured credit card to build your own history
Strong credit will help you later with loans, rentals, and insurance.
5. Invest in Yourself
Take online courses, learn a trade, build a side hustle, or get a certification. With fewer financial pressures, this is a great time to sharpen your skills and increase your earning potential.
Sage Summary: Redefining Adulthood on Your Terms
Living at home doesn’t mean you’re behind—it means you’re planning ahead. Generation Z is redefining what it means to be an adult by prioritizing financial security over outdated expectations. If you’re making the most of your situation, setting goals, and working toward independence, you’re already on the right track.
In a world where stability is harder to come by, living at home isn’t a step back—it’s a smart leap forward.
The Saving Sage 