This article makes it sound like the gen Z youngsters who land in their parents’ basement gave up on the idea of saving for a place of their own and instead are using the extra funds to drive the luxury goods market.
Same article for those with Bloomberg subscription:
Kind of concerning given the poor US saving rate for retirement and what will be declining Social Security benefits.
This is quite concerning:
“Recent U.S. census data show that nearly half of all young adults ages 18 to 29 are living with their parents — the highest level since 1940.”
The most recent national census took place in 2020 so no surprise here because many returned to parents houses during Covid. I bet next census will show more optimistic results. Very few from my DD class live with their parents. Also the young people I know plan homeownership at some point in the next few years and are saving for it.
Well, my kids are Gen Z and are only 14 and 16, so yeah, they’re definitely still living with the parents. Lol.
Only 50% true in my household, I now have a boomerang kid.
I’m not surprised by those stats, especially given WFH, COVID lockdowns, rising rent, real estate prices and interest rates. But I didn’t see where they’re choosing luxury purchases at the expense of saving for a home. They’re getting best of both: no rent means more disposable income = luxury purchases and saving for a home.
My older D has lived home since she graduated in 2019. She’s saved quite a bit of money towards purchasing a home (and is getting married next year) but she’s not a big spender so no help in supporting the luxury goods market. My S lived at home for a year+ since he graduated during covid and his job was WFH until just recently. He also saved a nice sum and moved into an apt a few months ago. He isn’t a big spender on luxury items either. I’m happy they’ve had the opportunity to start building a nest egg/down payment early in their adult life. I’ll encourage my youngest to move home for a bit after she graduates if it works out with her job situation. Not many opportunities to save a good chunk of money once all those real world expenses start piling up.
One silver lining might be that the 50% of “live at home” Zoomers will have less student loan debt and cc debt issues since they have more disposable income to payoff those debts.
Our youngest (turned 27 today) and his wife lived with us during Covid, saved up, and bought close to 12 acres of land in Puerto Rico that they’re turning into their off grid residence and a farm.
I guess those are luxury items? 
Neither of our older two have lived with us since a couple of summer vacations during college. Neither are into luxury items either. Oldest (30 years old this year) owns his own place. It’s his second house due to selling his first relocating this past year.
I’m probably in the wrong location for it, but I know very few who buy anything I’d consider a luxury item, esp youngsters.
The Army stole my kid at 18. They still haven’t given him back.
The age group in that link is 18-29. HS kids are obviously excluded.
My youngest son, graduated in 2020. Came home for spring break and never got to go back. He’s a studio arts major and got a non-college job that fall during Covid. He wasn’t making much money at all, but saved just about every penny. He just got a college related job over the summer and is still at home. It’s not an awful salary, but he’d be living hand to mouth if he lived on his own. Still frugal and saving, but has GF so they do things, but nothing luxury.
We actually prefer him to live at home, live his life and save his money right now!
Several Gen Z kids I know have asked for a nice watch as a graduation present. But that doesn’t mean they are acquiring tons of other luxury goods as well, or a wardrobe of watches. The title is a bit misleading.
With housing as expensive as it is, the kids who can live at home for a bit are really fortunate. Many don’t have that option. But I suspect many are also waiting to see where they’ll land. Buying a home ties you to a location, and with jobs and relationships still evolving, putting down that anchor just may not seem like the right decision.
I think much of this is a result of a generation of people who cannot (or will not) delay gratification. Saving for a home takes a long time. Buying a luxury item (or a Starbucks several times a day/week) can be done immediately. In addition, basic money skills are rarely taught by schools or parents. Saving money is hard and looks boring on social media!
My 2021 grad lives at home because she is a saver and as a consultant doesn’t see the sense in renting an apartment she will hardly use when she can live at home for free and has a good home life. She has no debt and saves about 90% of her income. She isn’t into luxury goods.
My 2022 college graduate is living in an apartment with 2 other people 500+ miles from home. He has a job that offers a pension and a deferred compensation plan with match. He’s not a luxury item type of guy, but I did buy him a luxury watch for graduation that he really likes. He’s very good at saving, and I have no doubt he’ll buy a home in the next 5-7 years.
I’m not seeing this in my d’s circle of friends either.
Our oldest (26) just came home after breaking up with her boyfriend of 6+ years. She’s as frugal as they come, has paid off about $60,000 in loans (has about $20,000 in federal loans and $10,000 in savings). A one bedroom apartment starts around $1500 a month so we are encouraging her to stay a bit, she WFH. Her 24 year old brother just moved out with some friends (hybrid work situation), and is paying off loans as well. Both should hit the 6 figure income mark in a couple of years. Our 21 year old will finish her DPT program in 2 1/2 years and will definitely be moving back to pay loans, and most likely our 19 year olds (one us commuting and living here). Our kids never asked if they could move back, just showed up with their stuff, knowing they’re always welcome. I don’t think any own a luxury item.
What do you all call “luxury goods”.
My D graduated in 2020. She is not living at home but her employer is still largely virtual and many of her contemporaries are at home. When she started work they actually said if you’re not already here it’s not necessary to move here for the job. I’m not sure what they are doing with the money. I know my D lives pretty well. She is definitely living much better, with much more disposable income, than I had at that age. They are saving for a down payment in addition to living well.
My S is graduating in the spring and I will be surprised if he doesn’t move back home. A little off topic for this thread, but the company he did his summer internship last summer made no permanent job offers this year. They have a group chat of all interns and even those with excellent feedback did not get an offer. He’s been looking hard, but I’m expecting him home.
We were the ones who offered our place to youngest and his wife during Covid. Would they rather WFH in a studio apartment in Bethesda or here on our farm with 3 bedrooms and plenty of space to roam? They offered to pay us monthly, but we told them to save it for a downpayment “somewhere.”
No regrets at all. The game playing and assistance with all sorts of chores made the Covid months rather fun for us TBH. And now they have their own place that we’ll be visiting soon to escape winter for a bit.
Our family tries to work as a team where all benefit.
But if they’d been spending the extra money on luxury items it probably would have bothered us TBH. Fortunately, they’re minimalists (matches going off grid, etc, with their own place and being super “green” planet-wise), so they spend their money wisely IMO. I’m glad we could help them out.