Millennials And Gen Z Are Rewriting The Empty Nest Script

With more millennials and Gen Zers continuing to live with their parents, the long-awaited empty nest is not the right of passage for baby boomers that it once was.

A RentCafe analysis of IPUMS data found that 20% of millennials and 68% of Gen Zers still live with family members and do not anticipate a change any time soon. More than 40% of those generations expect to share their homes for at least another two years.

About 14 million millennials and 23 million Gen Zers shared a household with at least one family member — the largest generational shares across all age groups. Baby boomers account for 6 million of the 51 million people living in multigenerational households and 6 million Gen Xers are living with family.

Millennials living at home are about 32 years old and work in food service, construction or education. Gen Zers living at home are about 22 years old and work in food service, construction or retail. Both generations are living with three other people.

Why is this? For one, younger generations seem to like living with their parents to save money on expenses such as childcare, utilities and rent. The money they save can be used for a down payment on a future home. They also might be staying home to care for family members who need help.  

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The high cost of living in West Coast cities makes it difficult for millennials and Gen Zers to strike out on their own. In Los Angeles, the cost of living is 51% of the national average, so it's no surprise that 35 percent of the city's 3 million millennials and 81% of the 1.3 million Gen Zers live with their parents.

Top 5 Metros With Largest Shares Of People Living In Multigenerational Homes

Source: RentCafe

Millennials and Gen Zers have an easier time flying the coop in certain cities. Cincinnati, for example, saw a 67% decline in millennials living in multigenerational homes over five years, and Milwaukee witnessed a 62% drop in Gen Zers living with relatives.

While the high cost of housing may keep some people from buying a home, it is still possible to own real estate. With Arrived Homes, you don't have to spend a fortune to invest in real estate. With as little as $100, anyone can buy shares of a rental property and benefit from long-term appreciation while collecting passive income.

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