Federal Reserve Survey Finds 49 Percent of Young Adults Live With Parents, Household Financial Comfort Near Post-Pandemic High

The Federal Reserve released its Report on the Economic Well-Being of U.S. Households based on the Survey of Household Economics and Decisionmaking. The survey found that 49 percent of adults ages 18 to 29 live with their parents.

It also found that 47 percent of adults in the same age group received financial help from someone outside their household to pay expenses such as a cell phone bill, general living expenses, or housing costs. The two groups are not identical, according to Laura Ullrich, director of economics at Indeed Hiring Lab. Last year the share of young adults living at home was closer to one in three.

Twenty-six percent of adults ages 30 to 44 also reported receiving outside financial help. The share of households reporting they were doing okay or living comfortably reached 78 percent in 2021 before settling at 72 to 73 percent in subsequent years.

The decline in reported financial comfort is concentrated among those without a high school diploma, while those with a diploma have remained roughly steady since 2016.

Ullrich noted that the trend aligns with housing affordability challenges, inflation, and difficulty landing a first job. She said slower household formation raises the ages at which people marry, have children, and buy homes.

Ullrich cautioned that the survey wording may affect how college students are counted because it asks only whether adult children live with respondents. She said the underlying increase in young adults living at home has continued over time.