Young Adults Living at Home Special Report
Shift in Young Adults’ Living Arrangements Impacts Apartment Sector
Health crisis amplifies existing trend among Generation Z and millennials. The impact of the pandemic on young adults is weakening short-term household formation and apartment demand. Widespread job losses and college closures recorded during March and April significantly increased the number of 18- to 34-year-olds who live with parents or relatives, bringing the tally to a record 27.7 million in June. The level has declined in subsequent months, though the volume of young adults living at home sat well above the prior four-year average in September at 25 million. This measure appears positioned to remain historically high in the near term as half of the jobs lost in the U.S. during the initial months of the pandemic have yet to be recaptured. Additionally, October filings for jobless claims remain relatively elevated, with an increase in filings under the Pandemic Unemployment Assistance emergency program recently recorded.