The Rise of Young Adults Living at Home: Exploring the Economic Pressures Behind the Trend

An influential report from the Institute for Fiscal Studies (IFS) reveals a significant trend: the number of individuals aged 25 to 34 living with their parents in the UK has risen by over a third in two decades. The increase, primarily affecting men in their late 20s, is largely attributed to exorbitant housing and rental costs, leaving many young adults unable to afford independent living. In 2006, 13% of this age group resided at home; by last year, that figure had surged to 18%, equating to approximately 450,000 more young adults in family households.

The pandemic marked the peak of this trend, with over one-fifth of young adults living at home. The IFS notes a shift in demographic patterns for this age group, with fewer marrying or starting families and a growing ethnic diversity influencing living arrangements.

Personal stories illustrate the struggle: 25-year-old Zach Murphy, a master’s student, shares his frustration over the housing market in London, while 33-year-old Danny McGuire describes how financial constraints led him back to his family home after a period of independence. Both echo a sentiment felt by many: the dream of homeownership feels increasingly unattainable due to rising costs.

Interestingly, the IFS highlights that around 14% of young adults living at home manage to save over £10,000 in two years, compared to 10% of those renting, revealing that living at home can sometimes facilitate quicker saving in high-cost areas. However, challenges such as commuting costs or sudden financial crises (like job loss) complicate this narrative. Overall, housing remains a pressing concern for young adults, with many reaching out to news platforms for assistance and insight.