'Hotel of mum and dad' for 25-34 year-olds has risen by more than a third since 2006
The number of 25 to 34 year olds still living with their parents has surged by over a third in less than two decades, according to new research. The Institute for Fiscal Studies (IFS) found that nearly a fifth (18%) of this age group were residing at home last year, a rise from 13% in 2006.
Despite a slight dip from the pandemic peak of 21%, the five percentage point increase equates to an estimated 450,000 more people in this age bracket living with their parents in 2024 than if the rate had remained at the 2006 level. The study also revealed that men were more likely than women to be living at home (23% compared to 15%), and rates were higher among UK-born young people from Bangladeshi and Indian backgrounds (62% and 50% respectively).
The trend for those in their early 30s changed very little, but the share of 25 to 29 year olds living at home rose from a fifth (20%) in 2006 to more than a quarter (28%) last year. Those on lower incomes were more likely to be living at home, with the IFS attributing the rise over recent decades to higher rents and skyrocketing house prices.
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The most significant increases in the proportion of young adults living at home were seen in areas that have experienced particularly high house price growth since 2006.
The largest rise, comparing the 12 months to the end of March 2007 with the year ending March 2024, was witnessed in the east of England, jumping from 14% to a staggering 22%. There were also significant leaps in the South West and South East, both surging from 12% to 18%, while the North West and London saw rises from 14% to 20%.
The percentage of young adults in Scotland staying with parents grew from 13% to 18%, in Wales from 17% to 20%, and Northern Ireland from 21% to 23%. While some young individuals manage to save a sizeable amount by living at home – with 14% amassing over £10,000 within two years, compared to roughly 10% of their counterparts renting independently – the situation doesn't equate to savings for everyone.
Researchers point out those at home may face heftier travel costs due to longer commutes and some might move back with parents due to divorce or job loss, incurring greater expenses.
Bee Boileau, the report author and research economist at the IFS, said: "In the last decade and a half, there has been a substantial increase in the proportion of young adults living with their parents.
"This has occurred alongside, and indeed has been fuelled by, increases in rents and house prices.
"For some, living with parents provides an opportunity to build up savings more quickly than if they were renting, which is an especially valuable advantage in high-cost places like London.
"However, others are likely to be living at a parental home due to a bad shock of some kind, such as the end of a relationship or a redundancy, or simply because they cannot afford to live independently."