Depending on how you look at it, Gen Z is the group hardest hit by the affordability crisis.
Even though young people this age are more likely than their parents to earn a college degree and work full-time, the combination also results in larger student loan balances, which has proven to be a major barrier for those looking to take up student loans.
At the same time, the prices of goods and services continue to rise, and wages have not quite kept up with the rise in daily expenses. Median weekly income increased by 38% from 2017 to 2025, and rent increased by 50%, according to a new analysis from the Urban Institute.
Although Americans across the board are struggling with rising health care costs, nearly half, or 49%, of adults ages 18 to 29 delay or skip medical care, more than any other age group, according to research from the Century Foundation. Additionally, this cohort is more likely to skip meals due to financial constraints or tap into savings to make ends meet.
A City University of New York graduate takes a selfie at the school’s graduation ceremony.
Mike Seeger | Reuters
The number of young people who are able to support themselves is decreasing, mainly due to economic pressures.
Several other studies have shown that nearly half of parents (highest on record) are now pitching in for help, including paying for essential monthly expenses like food, utilities and rent.
The percentage of young people living at home peaked during the pandemic, but has since declined and gradually recovered, according to U.S. Census Bureau data. According to 2025 Census data, approximately one in three adults ages 18 to 34 in the United States lives with a parent, a slight increase from the previous year.
“Dependency loop”
Edward Long, a principal at Aviti Investment Management in Greenwich, Conn., ranked No. 75 on this year’s CNBC 100 Financial Advisors list, says years of stock market gains may mean more parents are able to financially support their grown children.
But “it could also create a dependency loop” for children who become dependent on those funds, he said. “That’s something we’re talking about with our customers,” Long added. “Oftentimes, the recipient of a fairly large gift is dependent on it. It creates expectation and dependence.”
Still, Long added, many more parents may not be able to afford to support their children into their 30s, especially “for couples with fixed retirement incomes.”
Ariel Skelly | Digital Vision | Getty Images
Another Ameriprise Financial survey of more than 3,000 parents last year found that 98% said they would let their children live with them once they turned 21, but financial support doesn’t stop there.
Ameriprise found that parents not only provide shelter, but also finance their children until they reach adulthood.
Approximately 63% of parents are responsible for ongoing expenses such as phone bills for children over the age of 21. Nearly half (45%) pay for their children’s health insurance premiums up to the legal age limit of 26, and 33% contribute to their children’s education beyond university, 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 would want to step in and help their children build a solid financial foundation,” Deanna Healey, vice president of financial planning and advice at Ameriprise, said in a statement.
The survey found that 65% of parents believe they still have enough money to retire comfortably, but 36% are concerned that financially supporting their adult children will affect their plans.
“Parents need to be mindful of how the choices they are making to support their adult children now and in the future will impact their retirement goals, especially in retirement,” Mr Healy said.
Avity’s Long recommends building that support into your comprehensive financial plan. “We advise our clients to take advantage of the gift tax exemption system to make gifts to their children,” he said. “This allows someone to receive the money and provides a good estate planning perspective for the parents as well.” In 2026, the annual gift exclusion will be $19,000.
Disclosure: CNBC does not receive compensation for listing financial advisor firms on the Financial Advisor 100 list. Additionally, the inclusion of a company or advisor in our rankings does not constitute an individual endorsement of the company or advisor by CNBC.
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