Wealthy Young Adults More Likely Than Poorer Peers To Live At Home

Surprising Group More Likely To Live With Parents

Apparently having a warm little nest makes it tough to leave home.

Young adults from affluent families are more likely to live at home than their poorer counterparts, a new study from Australia’s Melbourne Institute has found (h/t the Wall Street Journal). Three quarters of 20-year-olds from wealthy backgrounds live at home, while less than two-thirds of young adults whose families used welfare still rely on them for financial support, the report finds.

The discrepancy is largely explained by the fact that young adults from poorer backgrounds tend to be financially independent because they have few other options. Low-income families are often either unwilling or simply unable to continue supporting their children into adulthood, said Professor Deborah Cobb-Clark, a co-author of the study.

On the other hand, young adults from privileged backgrounds often have brighter economic futures because they receive more support for their education, which tends to lead to better job prospects, according to the report.

The study also found that young adults of all backgrounds are now more likely to be bunking with mom and dad instead of paying their own rent. And it’s not just in Australia. More young adults in the U.S. are now living at home than any other time in the last three decades, according to data from the U.S. Census Bureau. Last year, 5.9 million, or 14.2 percent, of 25-to-34 year olds lived at home, the WSJ reports, citing U.S. Census Data.

And those living with their parents are more likely to be men than women. Men between the ages of 25-34 are more likely to live with their parents compared to women of the same age.

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