The Empty Nest Is On Hold

Atwood Group Brokered w/Realty One Group/Insights

For Buyers: Debbie Atwood helps Buyers secure the right home at the right price using hyper-local knowledge of the Phoenix Valley and insider access to off-market and coming soon properties.

For Sellers:Debbie Atwood helps Sellers maximize their sale price through strategic pricing, high-end photography, and aggressive professional marketing including digital marketing that reaches qualified buyers fast.

Many parents expected this season of life to look different.

The bedrooms would be empty.

The grocery bill would be smaller.

The house would be a little quieter.

After years of raising children, helping with homework, attending school events, and preparing them for adulthood, many parents imagined a time when their children would launch into lives of their own.

For millions of families, that timeline has changed.

According to a recent Realtor.com report, one in three adults under the age of 35 now lives with their parents. In fact, more than 25 million young adults are living at home, the highest number ever recorded.

Before anyone assumes this is simply a matter of motivation or work ethic, the data tells a very different story.

Most of these young adults are employed. Many have college degrees. Many are working hard and doing the things previous generations were told would lead to success.

The challenge is affordability.

Home prices remain significantly higher than they were just a few years ago, while rents have also climbed dramatically. At the same time, the United States continues to face a housing shortage estimated at roughly four million homes.

The Great Wealth Transfer

The result is that many young adults find themselves delaying major life milestones.

They are postponing moving out.

Postponing marriage.

Postponing homeownership.

And in many cases, postponing the opportunity to build wealth through real estate.

A few weeks ago, I wrote about what economists are calling the largest wealth transfer in history. Trillions of dollars are expected to pass from older generations to younger generations over the coming decades.

This new data helps explain why that conversation matters.

Many younger adults are not struggling because they lack ambition. They are facing a housing market that has become increasingly difficult to enter. For some, financial assistance from family may eventually become the bridge to homeownership. For others, it may simply mean staying at home a little longer while saving for the future.

The Missing Step In Homeownership

As a Realtor, I see both sides of this story.

I talk with parents who expected to be empty nesters by now.

I also talk with young adults who are working hard, saving money, and wondering if homeownership will ever feel within reach.

The emotional side of this trend often gets overlooked.

Parents may feel frustrated, concerned, or uncertain about what comes next. Adult children may feel discouraged or embarrassed that their path looks different than they expected.

Yet for many families, this is simply the reality of today's housing market.

The good news is that markets change.

Inventory changes.

Interest rates change.

New opportunities emerge.

The families who prepare today will be in the best position to take advantage of those opportunities when they arrive.

The empty nest may be on hold.

But that doesn't mean it has disappeared.

For many families, it simply means the journey toward independence is taking longer than anyone expected.

And perhaps the most important takeaway is this:

If your family is experiencing this, you are far from alone.

Millions of families across the country are navigating the same challenges, adjusting expectations, and finding new ways to support one another while they wait for the next chapter to begin.

Source: Realtor.com Research, 2026

Frequently Asked Questions

How common is it for adult children to move back home today?

More common than many people realize. Recent research shows that approximately one in three adults under age 35 lives with their parents. If your family is experiencing this situation, you are far from alone. Millions of families across the country are navigating similar financial and housing challenges.

Why are so many adults under 35 still living with their parents?

According to recent housing data, the primary reason is affordability. Home prices and rents have increased significantly over the past several years, making it more difficult for young adults to afford independent housing. Many are choosing to live at home while saving money, paying down debt, or waiting for better housing opportunities.

Is living with parents a sign that young adults are failing financially?

Not necessarily. Many adults living with their parents are employed and have college degrees. For many families, living together is a strategic financial decision rather than a reflection of a lack of ambition or work ethic.

How has the housing market affected first-time homebuyers?

Higher home prices, increased mortgage rates, and limited inventory have made it more challenging for first-time buyers to enter the market. As a result, the average age of a first-time homebuyer has increased significantly over the past two decades.

What is delayed household formation?

Delayed household formation occurs when young adults postpone moving out, renting, purchasing a home, getting married, or starting families. Housing affordability has become one of the biggest factors contributing to this trend.

How does living at home affect long-term wealth building?

One of the primary ways many Americans build wealth is through homeownership. Delaying the purchase of a home can delay equity growth and wealth accumulation. However, living at home can also provide an opportunity to save for a larger down payment and improve financial readiness.

What is the "largest wealth transfer in history"?

Economists estimate that trillions of dollars will transfer from Baby Boomers to younger generations over the coming decades through inheritances, gifts, and estate planning. This transfer of wealth may play a significant role in helping some younger adults achieve homeownership.

What can parents do to help adult children prepare for homeownership?

Parents can help by encouraging strong financial habits, discussing budgeting and credit management, supporting savings goals, and helping adult children understand the homebuying process. Every family's situation is different, but education and planning can make a meaningful difference.

Is now a bad time to buy a home?

Not necessarily. Every market presents both challenges and opportunities. While affordability remains a concern, buyers who prepare financially and understand their options can still achieve homeownership. The best time to buy often depends on personal circumstances rather than market headlines.

Will housing affordability improve?

No one can predict the future with certainty, but housing markets constantly evolve. Increased housing construction, changing interest rates, and shifts in local inventory can all influence affordability over time.

What should first-time buyers do now if they are not ready to purchase?

Focus on improving credit, reducing debt, building savings, and speaking with a trusted lender to understand available options. Preparing today can create opportunities when market conditions become more favorable.

Contact:

Debbie Atwood-Realtor, Realty One Group

📞 425-750-4970

✉️ [email protected]

🌐 www.atwoodgrouprealestate.com