We all know that Gen Z is opting to continue living with their parents. While this choice might seem like a smart financial move at first glance, recent findings suggest it comes with hidden costs, both mental and financial.
Business Insider, drawing on recent surveys and personal accounts, reveals that Gen Z, defined as those born after 1996 according to the Pew Research Center, faces less stigma than millennials did for residing with their parents well into adulthood. However, this leniency doesn't necessarily translate to benefits for this generation.
Living rent-free with family might appear to be an excellent way to save money, but various economic and emotional factors could work against young adults in the long term. Sarah Obutor, a 20-year-old from Georgia who moved back home during a college break, points out the limitations: "You can’t do all the things that you would want to do even though you are an adult."
Amy Lewthwaite, a 24-year-old social worker in southwest London, echoes this sentiment, mentioning the inability to engage in activities typical of adult life due to the lack of space. While she saves 30% of her income by living at home, she acknowledges that moving out would deplete her savings on rent.
The social constraints of living with parents, such as the inability to host gatherings or maintain a level of independence, can significantly impact mental well-being. Studies have shown higher levels of depressive symptoms among young adults who move back in with their parents, along with increased familial tension.
Moreover, the financial advantages may not materialize over time. Research indicates that those who live at home between ages 25 and 34 have lower chances of homeownership within a decade, potentially due to soaring home values and interest rates.
Despite these challenges, there's a shift in societal attitudes.
A Bloomberg News and Harris Poll survey from last year found that 87% of respondents believe people shouldn't be judged for living with their parents, marking a departure from the stigma faced by millennials. Bethany Clark, a 24-year-old who lives at home, attributes this change to the soaring cost of living: "When the cost of living and housing is so high, everyone gets it."
