College grads face unaffordable rents, many move back home

Home sweet home, again. Just not the home most college graduates envisioned.

During the past five years, as many as 30% of those who’ve earned a diploma are back living with mom and dad, according to a recent study by Clever Real Estate.

Rising living expenses, loads of debt and low job prospects are cited as the main factors leading young adults, 18 to 34 years old, with a degree to resume living with their parents.

And while a third of college grads returning home may seem high, the figure is lower than in years past. In July 2020, roughly 52% of those between 18 and 29 years old shared a home with their parents. In 1940 during the Great Depression, 48% once roomed with their parents, according to the study.

Another notable fact revealed by the study shows 76% of Gen Z young adults living under a parents’ roof also remain reliant on financial support from them. Comparatively, that figure drops to 59% for those who live independently.

As for achieving financial independence, 61% of those polled expected to reach the lofty goal within a year of graduation. But the study showed only 50% hit the mark.

Further findings reveal 52% of Gen Z say they are “more likely” to move back home within the next five years instead of purchasing their own home. Even more, 58% shared they are “rooting” for a housing market crash so they could eventually afford their own residence.

Though a college degree serves as a badge of independence for many, a whopping 96% asked expressed fear about “life after graduation.” Finding a job (45%) and affordable housing (34%) topped their list of concerns.

Ultimately, the thought of reuniting with their parents after college is not something most graduates want to consider. Almost one in three (29%) consider such plan their “least-preferred living outcome.”

However, 7% admit they would “actively choose” to go this route, while half (50%) worry they will need to make this decision.