Many of the youngest home shoppers out there faced the where-to-live-after-college question—one that is challenging enough on its own—during a global health crisis whose fallout will continue to be felt, especially when it comes to employment and home/rent prices, for the undetermined future.
Rent.com's research team surveyed more than 2,000 young millennials, those born between 1993 and 1998 (called "Zillennials" in some circles) to learn more about their post-college housing situation.
Returning to the nest after college already was a trend before COVID-19—according to a Rent.com survey, college students who graduated without jobs were twice as likely to move back home.
But this survey indicates that Generation Z and younger Millennials plan to find their own place as opposed to moving back home with Mom and Dad, to a much higher degree than older Millennials.
"Their main reason ...? Independence—nearly two-thirds of those who aren’t planning to move home said they 'need to be independent,' while almost 40% said they had the financial means to support themselves," said authors of the Rent.com study. "Of those who moved home, we found that nearly three-quarters did it to save money, while 35% wanted to be close to family. A small percentage still lived at home for other reasons, such as staying at home in college and job loss."
75.2% of Zillennials surveyed did not return to their parents' homes after college graduation.
46.2% moved to a new city after receiving their diploma, while 29% stayed in the same town/city.
The researchers found that employed graduates who move back home after graduation plan to stay for three months, while unemployed graduates plan to stay for a year or more.
Although the economic outlook remains uncertain for Gen Z and younger Millennials, 50 percent of Gen Z-ers [1] expect to move out by age 24, while only 40% of Millennials planned to at that age.
"Zillennials straddle a unique line between Millennials and Gen Z-ers. While Millennials grew up with things like DVD players and family computers, Gen Z grew up with iPads, smartphones and Wi-Fi," note the researchers. "As the younger generation of Zillennials and Gen Z-ers begins graduating college and searching for their first [home], it’s worth considering that their needs might be different than before."
This inclination toward independence showed despite the survey's additional finding that many recent graduates—more than four in 10—said they weren’t happier with their current housing than they were in college. Of the 42.7% who were unhappy, 42.% said they hated where they live now.
Still, as the researchers concluded, today's young adults "are willing to sacrifice quite a lot for independence from their parents."
The full study and methodology is available at Rent.com/research [2].