The proportion of 25- to 34-year-olds living with their parents has increased by more than a third in just under two decades, according to a new analysis.
Last year, the share of the age group living at home was almost a fifth (18%), up from 13% in 2006, the Institute for Fiscal Studies (IFS) said in its report Mom and Dad Hotel? report.
The latest figure is down from the pandemic high of 21%, but the five percentage point increase represents about 450,000 more people in this age group living with their parents in 2024 than if it had remained at the level from 2006.
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Men were more likely than women to live at home, 23% compared to 15%, while rates were higher among UK-born young people from Bangladeshi and Indian backgrounds, at 62% and 50% respectively .
According to the researchers, living with one’s parents is “particularly common” among those with the lowest incomes, with only 2% of the highest income quintile, 25-34 year olds.
Although the trend for 30-somethings has remained largely unchanged, according to the IFS, the share of 25- to 29-year-olds living at home increased from 20 percent in 2006 to 28 percent last year.
The biggest rise, according to researchers comparing the 12 months to March 2007 and the year to March 2024, occurred in the east of England – from 14% to 22%.
The South West and South East saw increases of 12% to 18% and the North West and London increased by 14% to 20% respectively.
The share of young Scottish adults living with their parents has increased from 13% to 18%; in Wales it rose from 17% to 20% and in Northern Ireland from 21% to 23%.
According to the report, those living with their parents would likely have some ability to save, with 14% banking more than £10,000 over a two-year period, compared to around 10% of young adults living in private rented accommodation. .
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Bee Boileau, author of the report and research economist at the IFS, said: “Over the past fifteen years there has been a substantial increase in the proportion of young adults living with their parents.
“This has occurred alongside, and in fact been fueled by, rising rents and property prices.
“For some, living with their parents offers the chance to build up savings more quickly than if they were renting, which is a particularly valuable benefit in high-cost places like London.”
She added that others would likely be living at home “due to some sort of shock”, such as redundancy or the breakdown of a relationship.