Gen Z Earns More Than Millennials But Opts for 'Hotel Mum and Dad' Over Homeownership
New research indicates that despite higher incomes, younger generations are increasingly living with parents due to unaffordable housing.
Young adults in Gen Z are earning more than their millennial predecessors but are choosing to live with their parents longer rather than face high rents and mortgages, according to new research. This trend, driven by the rising cost of housing, has led to a significant increase in the number of young adults residing in the family home.
The analysis, published by the Resolution Foundation, reveals that individuals born between 1996 and 2000 have incomes approximately 15 percent, or £3,700, greater than those born a decade earlier. This improved financial standing is partly attributed to younger generations remaining at home, thereby reducing living expenses.
The Rise of 'Hotel Mum and Dad'
The proportion of 20 to 24-year-olds living with their parents has risen to 63 percent, an increase from 51 percent 15 years ago. Even among those aged 25 to 29, the share living at home has grown to 24 percent, up from 19 percent in 2011. The report attributes this phenomenon to