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Leaving the nest is never easy, but according to a recent study, most college graduates plan to stick with Mom and Dad as long as possible.
Sallie Mae surveyed recent college graduates about their postgrad living arrangements and aspirations, and the study revealed that nearly half of graduates who finished college within the past five years are still living at home with parents or other relatives.
While the current housing market, persistent inflation, and looming student loan payments certainly play a role, for many, they’re simply not ready to go—especially young men.
Living with parents is still the norm—at least for a while
Sallie Mae’s survey found that 64% of college graduates who left school in the past two years currently live with their parents, and 2% live with other family members. The rest are finding their footing elsewhere: 8% are renting solo, another 8% are renting with roommates, 9% live with a romantic partner, and 7% managed to buy a home.
But five years out from graduation, the picture begins to shift. Only 35% of grads who have been out of school for three to five years still live at home or with relatives. Meanwhile, 20% report owning a home, 19% live with a romantic partner, 16% rent solo, and 9% rent with roommates.
Overall, that means 47% of Gen Z students now out of school are still living at home, with a decent number of those young people very happy to stay put for the time being.
Men say they’re just not ready to move out
Among all recent grads living at home, the divide between men and women is striking. While 45% of male graduates said they were “not ready to move out,” only 28% of female graduates gave the same response. While the gender gap is interesting, the reasons young people had for actually moving out were fairly straightforward.
For graduates who have left the nest, the No. 1 factor influencing where they live is simple: work. A full 45% of respondents said their job’s location determined where they chose to live after college. Affordability followed closely behind, at 40%, while 38% said they stayed in the same place where they grew up. Family connections also remain strong, with 37% citing proximity to relatives as a deciding factor.
Quality of life—including weather, safety, and lifestyle perks—was important for 30% of grads. Less commonly cited reasons included being near a romantic partner or social circle (21%), educational opportunities (14%), or professional advancement (15%).
Homeownership still tied to perceived success
The survey also found that a graduate’s sense of personal success might influence whether they end up buying a home. Those who felt “very successful” were 3.5 times more likely to have bought a home within five years of graduating (27%) compared with those who felt neutral or unsuccessful (8%).
Of course, it’s hard to feel successful when the deck seems stacked against you. For one thing, with boomers sitting on nearly $19 trillion in real estate and most opting to age in place, inventory is quite low in desirable locations to live.
Additionally, student loan debt has been one of the biggest hurdles for young people hoping to settle down, pushing the first-time ownership age well into the late 30s now. In fact, according to PYMNTS Intelligence, a payments data provider, Gen Z’s top financial goal isn’t buying a home—it’s paying off debt.
Still, Gen Z might not be all that rushed to achieve homeownership anyway. A new Insurify survey found that a whopping 90% of Gen Z homeowners underestimated the cost of owning a home, which is further hurting their finances.