Moving Back Home Can Create a Windfall

Northwestern Mutual’s 2025 Consumer Sentiment survey finds more young adults are moving back home to save money. Done right, it can be a good experience for all. Here’s how to make a smooth landing.

With housing costs higher than ever, more young adults are moving back in with their parents. That’s one finding from our latest Consumer Sentiment Survey, a nationally representative online poll of 2,511 Americans conducted in November 2025.

The survey found that more than half (54 percent) of adult Gen Zers (ages 18–28) are living with their parents or family. Just 11 percent of them own their own home, and 27 percent are renting.

Even Gen Zers who aren’t living with parents now think of it as an option: In the past five years, according to our survey, about a third of adult Gen Z adults not currently living with parents or family (32 percent) report having either moved back home or considered it to save money. More young men than women are living at home, according to the Pew Research Center—so many that they now have their own label: stay-at-home sons.

It’s not hard to see why. According to the Joint Center for Housing Studies at Harvard University, in 2024 the median home price nationwide reached five times the median household income. That’s nearing historic highs of unaffordability. By comparison, as recently as the 1990s, the median home cost just 3.2 times median income.

And the national median disguises even greater local disparities: In some California cities, home prices are now 10 times the local median income. The Center warns that current levels of unaffordability are making it especially challenging for younger adults, even those with good jobs, to buy a home.

If you’re among those who’ve moved back home to save money, you may feel happy to have the support of your family—while also feeling some discomfort over the need for help. Bear in mind, multi-generational homes have long been common in many cultures. Someday you might return the favor by caring for your aging parents in your own home. And many young adults report establishing deeper relationships with their parents when living together as adults.

What’s the downside of going home again?

Moving back home can present personal challenges:

• It could limit you professionally if your family home is far from job opportunities.

• If you’re married or in a relationship, living together with your parents (or your partner’s parents) can limit your privacy.

• If you’re single, dating (or even just socializing) might be tricky.

• More generally, it can be challenging to maintain your personal identity as an adult in the home where you grew up.

The secret to success: Be intentional

Start by being clear with your family about boundaries and expectations—especially around finances. In cultures with a long tradition of multi-generational homes, the concept of “pulling your own weight” is often replaced by a more flexible, collaborative approach, in which each family member contributes what they can. That might be financial, or it could be household chores or even home and car repairs if that’s your thing. For example, “stay-at-home sons” who are between jobs may be more able to help around the house than pay the bills.

Some things to consider when discussing money:

• Your parents might be stretched as well. Do they still have a mortgage, HELOC or credit card debt?

• If you are working, paying them rent, even a small amount, can help them as well as relieve any guilt you might have about moving back in. It can also help build a respectful boundary between you and your parents—you’re not just a “guest.”

• Survey respondents of all ages who are living at home report contributing to the household financially. Almost half (46 percent) report contributing to household groceries and supplies, while 38 percent say they pitch in on utility bills.

Don’t neglect non-financial contributions:

• When you were a teenager, did your parents beg you to take out the trash? Doing chores with pleasure (and without being asked) is a powerful sign that you’re now living at home as an adult.

• Almost two-thirds of respondents (64 percent) who live with family say they help with household chores, such as cooking, cleaning and yard work.

• Roughly half (47 percent) help with errands and giving rides.

• About one-fourth (24 percent) help with caregiving, such as elder care, babysitting or pet care.

Don’t forget about your own budget. You probably moved home to save money. But without paying rent or other household bills, it can be easy to overspend on impulse purchases. Here’s how to prioritize your financial goals:

• Make a list of what you’re saving for and set that money aside. The goal might be a down payment on a home, a security deposit, a wedding or boosting retirement savings.

• If you’re not paying rent to your parents, pay yourself “rent” every month and deposit those funds into your savings account.

• Consider setting specific savings goals for your future household expenses, such as movers and home renovations, and tracking your progress on each one.

• Another strategy if you find it hard to stay disciplined is to find an accountability partner who can help keep you in line. This could be anyone you trust who is on the same page in terms of spending—like a parent, sibling or friend.

• Have an exit plan. Calculate how much money you’ll need to meet your goal, whether buying a home or some other large expense. Then figure out how much cash you can save each month toward that goal. That will tell you how long you need to stay with your family while leaving room for the unexpected. Share your exit plan with your family.

Finally, keep the conversation going. Set up a monthly family meeting. Use the time to review spending, upcoming bills and goals. Allow everyone to share their financial goals and work together.

Planned well, living at home can supercharge your savings goals

Family support in uncertain times can be a game changer. Your Northwestern Mutual advisor can help you and your family tailor a plan that’s just right for you—and keep you on track toward your goals.