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A significant shift is emerging among Generation Z individuals, with a striking number choosing to reside with family due to financial constraints in the post-pandemic world. According to a recent survey by Intuit Credit Karma, a staggering 31% of Gen Zers have moved back in with their parents, citing soaring housing expenses, increased interest rates, and stagnant income growth as the primary factors.
The study highlights a grim reality: the cost of housing has surged to new highs, forcing many young adults to delay or reconsider living independently. Renting, often seen as an alternative, isn't proving to be more accessible either. The report reveals that in 2022, an average of 30% of the median income is now required to cover typical rent expenses, a substantial increase compared to previous years.
Moreover, data from the Association of Realtors indicates a striking trend: the age of the typical first-time homeowner has surged to 36 years old, marking a record high. This statistic is particularly jarring given that the oldest members of Generation Z are merely in their mid-20s, showcasing a significant delay in achieving homeownership compared to previous generations.
These revelations paint a stark picture of the financial challenges facing the younger demographic, raising concerns about their ability to attain financial independence and stability in an increasingly challenging economic landscape. As housing costs continue to soar, it remains to be seen how this trend will impact the aspirations and financial trajectories of Generation Z in the long run.