More than 40% of 25-year-olds are still living with their parents, according to analysis of UK data on housing, employment and wealth carried out for the BBC by the Institute for Fiscal Studies (IFS). The figure, up from 25% in the 1990s, marks a dramatic shift over three decades – and is just one sign that people in their 20s are facing a tougher start to adulthood than any generation in almost half a century.
The IFS examined government data stretching back to the early 1980s, comparing key metrics for different generations at age 25. The biggest change it found was where those in their 20s are living. Home ownership among 25-year-olds has plummeted from 43% in the mid-1980s to just 15%. The reason is simple: it is too expensive. Housing costs for renters or mortgage-holders in their 20s are now the highest ever recorded for that age group, taking up a larger share of income than for their parents or grandparents. And bills have spiralled rapidly, hitting Gen Z hardest because their wages are lower on average than other age groups facing the same rising prices.
“Over 40% of 25-year-olds live with parents, home ownership slumps to 15% as Gen Z faces harshest start in decades.”
Adam Daytona, 26, moved back home this year to live with his parents. He said: “I think there's no world where it's normal to be 26-years-old still living at home. It's unfair on me, it's unfair on my parents. To state the obvious, I'm not going to bring a girl back to my parents' house. So it would have 100% affected that part of my life, which does get me low, obviously. People say your 20s are the best years of your life and these are the worst years of my life, by far.”
His parents, Jane, 57, and Neville, 64, said: “I think it's very difficult for them. They're not able to buy houses like we were able to. We were more than happy for him to come home but obviously, you know, we're getting older and it would be nice to have a place to ourselves.”
The findings are underscored by the experiences of young people themselves who, along with parents, have contacted BBC Your Voice about their circumstances, with many saying they were frustrated about being accused by older generations of not trying hard enough. Employment rates for Gen Z have also dipped, while wages have stagnated – a combination that leaves many 20-somethings trapped in a cycle of high costs and low income, unable to build the financial foundation their parents once enjoyed.