‘A paycheck is not the key to independence’: Nearly 1 in 3 adults under 35 still live at home — and most of them have jobs

The report found that roughly 70% of 25- to 34-year-olds living at home are employed, suggesting that earning a paycheck is no longer enough to afford independence.

Jim Gruler, a real estate broker and co-founder of Seeking Agents, told Moneywise that this trend highlights a growing disconnect between wages and housing costs.

“For many young adults, having a full-time job is no longer enough to comfortably afford rent, save for a down payment, and cover everyday living expenses at the same time,” he said. “Employment remains important, but affordability has become the bigger challenge.”

Why people are staying at home longer

The report found that housing cost remains one of the primary reasons adults under 35 continue living with their parents. While many are employed, high home prices and elevated borrowing costs have made homeownership increasingly difficult to reach.

The pressure is evident throughout the housing market. New homes sold for an average of $540,600 in May 2026, according to Census data, and prices are virtually flat year-over-year, while sales numbers remained sluggish years after they fell to a nearly 30-year low in 2023, underscoring the affordability challenges facing many buyers.

At the same time, Realtor.com Chief Economist Danielle Hale expects mortgage rates to average 6.5% this year, roughly in line with current levels, while home prices are projected to rise another 4% in 2026.

Those higher borrowing costs can significantly affect what buyers can afford, according to Gruler.

“A few years ago, buyers could often qualify for significantly more [expensive] homes with the same income because borrowing costs were much lower,” he said. “Today, higher rates mean higher monthly payments, which can make homeownership feel out of reach even for people with stable jobs.”

Paying off debt before moving out

Housing costs aren’t the only financial hurdle keeping young adults at home.

Debt can also make it harder to achieve financial independence. While adults between 18 and 29 generally carry less debt than older generations, much of what they owe is tied to student loans, auto loans and credit card balances, according to data from the New York Federal Reserve.

Those monthly payments can eat into money that might otherwise go toward a down payment, emergency savings or other financial goals, making it more difficult for young adults to afford a place of their own.

For some, living with their parents provides an opportunity to improve their financial footing before taking on housing costs.

“Many are using the opportunity to pay down student loans, build emergency savings, improve their credit, or accumulate a larger down payment before entering the housing market,” Gruler explained.

The growing cost of financial independence

While living with parents can offer a financial advantage, it’s not an option available to everyone.

Some parents downsize as they age, leaving less room for adult children to move back in. Others live far from major employment centres, making a daily commute unrealistic for young adults who work in the city. Family dynamics, caregiving responsibilities and personal circumstances can also make multigenerational living impractical.

For those who do have the option, however, staying at home can provide a significant financial head start. On the r/Money subreddit, one user credited living with their parents until age 27 with helping them save enough to buy a home and build an investment portfolio.