Many young adults across the nation find themselves unable to leave the nest due to various economic pressures, especially in Iowa.
A confluence of factors, including housing shortages, job market shifts, and rising costs of living, has created a challenging environment for young adults looking to move out on their own.
Because of this, according to the most recent Census figures, 33% of young adults aged 18-34 live with their parents, nearing the historic highs seen during the COVID-19 pandemic. That equals to 25.2 million adults under 35 living with their parents in 2025, according to Realtor.com® research.
Moreover, the same generational report by Realtor.com highlighted that a paycheck is no longer the clear dividing line between dependence and independence. This suggests that even with employment, many young adults find it difficult to afford their own living spaces.
Iowa's young adults staying home
The trend of young adults living at home is not uniform across the nation, with significant variations by state. By using Census data, FinanceBuzz was able to map out the percentage of 18- to 34-year-olds who live with their parents in every state.
For instance, according to their research, 21.60% of young adults aged 18 to 34 in Iowa are living with their parents. This figure is notably lower than the national average, reflecting Iowa's more affordable housing market.
Furthermore, Iowa's housing market appears to be more accessible compared to many other states. The median house price in Iowa is $282,886, and the state has received an 'A' grade in the 2026 Realtor.com Housing Report Cards.
This strong grade and relatively lower median home price suggest that while challenges exist, Iowa offers a more favorable environment for young adults seeking to establish independent households than many other regions, hence it's lower score compared to places like New Jersey (44.1%), Connecticut: 41.3% and California (39.1%).
Employment not enough for independence
As mentioned, a record 25.2 million adults under 35 are living with their parents in 2025, marking the highest number ever recorded, surpassing even the pandemic peak. This represents 33.0% of young adults, a figure close to the all-time high of 33.6% set in 2020.
This trend signifies a significant shift, as nearly 5 million fewer young adults would be living at home today if co-residence rates from the early 2000s had persisted.
The primary driver behind this phenomenon is the escalating cost of housing, rather than a lack of employment opportunities. Realtor.com data indicates that 7 out of 10 adults aged 25-34 living at home are employed. The median home listing price nationwide has reached $430,000, a substantial 34.4% increase compared to pre-pandemic levels in 2019. Similarly, the median asking rent has climbed to $1,673, up 17.9% since 2019, exacerbating an estimated 4-million-unit housing supply gap.
Moreover, the increase in adults living at home is evident across different age groups. For those aged 18-24, over half (57.6%) reside with their parents in 2025, a rise from 54.6% in 2019 and 52.1% in 2000. This demographic alone accounts for 17.6 million individuals, or about 70% of all at-home adults.
The delay in independent living is particularly pronounced at key life stages: by age 22, 49.3% remain at home (up from 46.1% pre-pandemic), and by age 24, this share jumps to 35.2% in 2025, a significant increase from 29.6% in 2019. This indicates a growing number of young adults are delaying their transition into independent households due to economic pressures.
"Something about their income level, debt load, or the cost of housing in their market is keeping them home despite steady employment," said Hannah Jones, senior economist, Realtor.com. "The rise in college attendance over the past 25 years likely plays a role too: More widespread student debt may be constraining what an entry-level salary can actually buy in terms of independent living."
Jones further elaborated on the two distinct groups emerging from this trend. "The reality is probably two groups. A genuine launchpad cohort with higher incomes and lower debt who will convert to buyers when conditions allow, and a larger group for whom the childhood bedroom is less a runway and more a floor, preventing a worse outcome, but not reliably producing the one they're aiming for."
Generated with AI assistance and finalized through human editorial oversight by Dina Sartore-Bodo and Gabriella Iannetta.