By some measures, Generation Z is the hardest hit by the affordability crisis.
Even though young adults are more likely to have a college degree and work full time compared with their parents at this age, that combo also comes larger student loan balances, which have proved to be a significant obstacle for those starting out.
At the same time, prices for goods and services continue to rise and wages just haven’t kept up with those soaring everyday expenses. Between 2017 and 2025, median weekly earnings grew by 38%, while rents increased by 50%, according to a new analysis by the Urban Institute.
Americans across the board struggle with higher costs, but nearly half, or 49%, of adults ages 18 to 29 have delayed or skipped medical care — more than any other age group, according to a study by the Century Foundation. In addition, this cohort is also more likely to skip a meal due to financial constraints or tap their into savings to make ends meet.
A City College of New York graduate takes a selfie during the school’s commencement ceremony.
Mike Segar | Reuters
Largely because of economic pressures, fewer young adults make it on their own.
These days, about half of parents — a record high — are pitching in to help, several other studies show, including paying essential monthly expenses, such as food, utilities and rent.
The share of young adults living at home peaked during the pandemic, then fell and has been creeping back up, according to data from the U.S. Census Bureau. Roughly 1 in 3 adults ages 18 to 34 in the U.S. live with a parent, 2025 Census data shows, up slightly from the year before.
The ‘dependency loop’
However, “it could also create a dependency loop” for children who become reliant on those funds, he said. “That is something we talk to our clients about,” he added. “In a lot of situations, the recipients of rather large gifts are dependent on it — it creates an expectation and dependency.”
And still, many more parents may not have the financial wherewithal to support their children into their 30s, particularly “for a couple in retirement on a fixed income,” Long added.
Ariel Skelley | Digitalvision | Getty Images
Another Ameriprise Financial study, which surveyed more than 3,000 parents last year, found that 98% said they would let their children live with them after they turn 21 years old — but the financial support doesn’t stop there.
Beyond providing shelter, parents are funding their kids well into adulthood, Ameriprise also found.
Roughly 63% of parents are covering ongoing expenses like phone bills for children over the age of 21. Nearly half, or 45%, are paying for their adult children’s health insurance costs until the age of 26, or the legal age limit, and 33% are contributing to their children’s education beyond college, including graduate school.
“Parents are watching their adult children navigate the evolving economic realities of the post-pandemic era, and it’s understandable that they want to step in and help their children establish a solid financial foundation,” Deana Healy, vice president of financial planning and advice at Ameriprise, said in a statement.
According to the research, 65% of parents believed they would still have enough money to retire comfortably, yet 36% worried that supporting adult children financially could impact their plans.
“Parents should be mindful of how the choices they’re making to support adult children today and into the future impact their own goals, particularly for retirement,” Healy said.
Avity’s Long recommends incorporating that support into a comprehensive financial plan. “We advise our clients to make gifts to their children through the gift tax exclusion,” he said. “That enables someone to receive money and also provides a nice estate-planning angle for the parents.” In 2026, the annual exclusion for gifts is $19,000.
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