More young adults living with mum and dad than 20 years ago

More young adults are living with their parents than they were in 2006, new research shows.

The ‘Hotel of Mum and Dad?’ was funded by the Economic and Social Research Council and published by the Institute for Fiscal Studies (IFS).

The study digs into who lives with parents, why this trend has risen and what it means for young adults' savings.

Key findings

Here are a few key findings:

• The rise is mainly among those in their late 20s.
• Living at home has increased from 20% to 28% for 25-29-year-olds.
• For those aged 30-34, the change has been minimal.
• Bangladeshi young adults saw the largest increase, from 28% to 41%.

Overall, about 450,000 more young adults are sharing a roof with mum and dad compared to 2006 levels.

Who’s living at home?

It seems living at home is especially common among:

• men
• those earning lower incomes
• young adults of Bangladeshi heritage

The housing crisis factor

House prices are a major reason for the trend as more and more people are struggling to get on the housing ladder.

In areas where house prices have surged, more young adults are moving back in with their parents.

The south-west and east England saw increases of 58% and 56%, respectively.

Two sides to the coin

Living with parents can be a mixed bag.

For some, it’s a chance to save money, reducing rent costs and helping them build financial security.

In fact, those living at home saved an estimated £560 a month in rent, soaring to £1,000 in London.

But it’s not all sunshine and rainbows.

Many are living at home due to difficult circumstances like job loss or relationship breakdowns.

It’s a safety net for some, even if it comes with a bit of baggage.