Record Share of Under-35 Adults Live With Parents: What the Data Says About Affordability

The headline: co-residence stays near record highs

Across multiple reports this week, one data point keeps resurfacing: about one in three adults under 35 lived with their parents in 2025, near the highest share seen in the pandemic period. Coverage also notes that many of these young adults are employed—suggesting housing costs are the binding constraint rather than job availability. [scrippsnews.com] [theguardian.com]

Why affordability is squeezing household formation

Household formation depends on whether the monthly payment (rent or mortgage) fits the budget and whether the upfront cash requirement is achievable. When either side breaks, people delay moves—doubling up with roommates, renewing leases, or moving back home.

Reports tying the co-residence trend to affordability point to two persistent baselines: home prices remain elevated relative to 2019, and rents are still higher than pre-pandemic levels. Even if a buyer can handle a mortgage payment on paper, the down payment and closing costs can extend the “save-up” timeline by years. [theguardian.com]

Income required: a payment-based view

A useful way to interpret affordability is to translate a home price into the income needed to qualify for the full housing payment—principal and interest plus typical property taxes and insurance—under standard debt-to-income constraints.

HSH’s 1Q 2026 analysis illustrates how sensitive that number is to rates and assumptions. Using a 30-year fixed rate assumption of 6.11% and a 20% down payment, HSH estimates the income required to buy a national median-priced home at roughly $103,420 per year (including typical taxes and insurance). HSH also highlights that smaller down payments, which can add PMI, raise the income hurdle further. [hsh.com]

A regional snapshot: Maine’s decade-long price run-up

Affordability pressures aren’t evenly distributed. Maine reporting cites research that ranked the state among the top in decade-long home price increases, and notes that income growth has lagged price growth—making it harder for first-time buyers to catch up as the down payment target rises with prices. [mainepublic.org] [constructioncoverage.com]

What would ease the trend

The common thread across these stories is supply. More inventory—especially at entry-level price points—reduces bidding pressure, creates more choices, and can shorten the search timeline for first-time buyers.

Rates matter, too, but the co-residence data suggest that many households need either (1) meaningfully lower monthly payments, (2) more attainable cash-to-close requirements, or (3) both, before moving out becomes sustainable.

**Bottom line:** When about one in three under-35 adults are living at home and many are working, it’s a signal that affordability constraints are delaying household formation—and building a pool of “latent demand” that could re-enter the market when payments and supply finally improve. [scrippsnews.com] [theguardian.com]