Rising housing costs push more young adults to live with parents in NJ
Trenton, NJ – If you listen to Governor Mikie Sherrill and state Democrats, New Jersey is facing a housing crisis. If you read between the lines, a new study suggests New Jersey’s housing crisis has a direct correlation to affordability.
A growing number of young adults in New Jersey are continuing to live with their parents, as high housing costs and affordability challenges reshape traditional paths to independence. New data shows the state ranks among the highest in the nation for adults ages 25 to 34 remaining at home.
New Jersey’s cost of living is approximately 14–20% higher than the U.S. average, primarily driven by housing costs that are roughly 36–39% above national averages. While groceries, utilities, and taxes are higher, the state often features higher median wages compared to the rest of the country.
According to a National Association of Home Builders analysis of U.S. Census data, 26.3% of young adults in New Jersey were living with parents or parents-in-law in 2023. That places the state second in the nation, just behind California at 26.5%.
Housing affordability driving trend
Nationally, about 19.2% of adults ages 25 to 34—roughly 8.5 million people—lived with parents in 2023. While that figure is slightly lower than recent years, it remains significantly higher than historical levels.
“Young adults ages 25 to 34 typically make up half of all first-time home buyers,” the NAHB analysis noted. “However, this demographic of would-be buyers and renters is struggling to leave the nest.”
Key Cost Factors:
- Housing: Median home prices are significantly elevated, making it one of the most expensive states for renters.
- Overall Index: Around 114–115, meaning residents pay significantly more for essential goods and services.
- Regional Differences: Costs vary, with some suburban areas like Morristown offering higher income-to-expense ratios despite high housing costs.
- Other Expenses: Utilities are about 2–9% higher than the national average
Key Points
- New Jersey ranks second nationwide with 26.3% of young adults living with parents
- High housing costs and mortgage rates are key factors behind the trend
- Nationally, 8.5 million young adults lived at home in 2023
The report points to ongoing affordability challenges as a major factor slowing household formation. Elevated mortgage interest rates and record-high rental costs have made it increasingly difficult for younger adults to enter the housing market.
Coastal states dominate highest rankings
States with the highest shares of young adults living at home are largely concentrated in high-cost coastal regions. Along with California and New Jersey, Hawaii (25.2%), Delaware (23.2%), and Maryland (22.7%) round out the top five.
The data highlights a long-term shift. In 2000, fewer than 12% of young adults lived with their parents, compared to nearly one in five today nationwide.
“The regional data illustrate that prohibitively expensive housing costs are one of the primary reasons young adults continue to live in parental homes,” the report stated.
Housing experts warn that fewer young adults forming independent households could have broader economic consequences, particularly for the homebuilding industry, which relies on first-time buyers to sustain demand.
