New Mexico’s Young Adults Are Abandoning The Rental Market To Live At Home Longer

The current housing market presents significant challenges for young adults, marked by persistent housing shortages, job market fluctuations, and rising costs of living. These factors collectively make independent living increasingly difficult for many.

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, as of 2025. This figure translates to 25.2 million adults under 35 living with their parents in 2025, according to Realtor.com® research.

Moreover, a generational report by Realtor.com noted that a paycheck is no longer the clear dividing line between dependence and independence. This suggests that even with employment, many young adults struggle to afford the costs associated with establishing their own households.

New Mexico's young adults face housing hurdles

A recent analysis by FinanceBuzz, utilizing Census data, sheds light on the percentage of 18- to 34-year-olds who are living with parents across the United States. These findings reveal a concerning trend for young adults striving for independence.

In New Mexico, 33.20% of young adults aged 18 to 34 are living with their parents, putting it just shy of cracking the top ten states with adults still living at home.

One common thread among states with high percentages of young adults living at home is their high cost of living, indicating that this trend is largely need-based. Conversely, states with lower housing costs, more remote housing options, and generally more space tend to see lower rates of cohabitation with parents.

New Mexico's median house price stands at $398,774. While this might be lower than some coastal states, it still represents a significant financial hurdle for many young adults. Furthermore, New Mexico received a "C-" grade in the 2026 Realtor.com Housing Report Cards, suggesting that the state's housing market faces challenges in affordability and supply compared to other states.

Economic pressures delay independence

The report from Realtor.com provides additional crucial insights into why so many young adults are living with their parents. Again, the data, reflecting the situation in 2025, indicates a record 25.2 million adults under 35 are living with their parents, surpassing even the pandemic peak. This means approximately 33% of young adults reside at home, just shy of the all-time high of 33.6% set in 2020.

This trend represents a significant shift; if co-residence rates from the early 2000s had persisted, nearly 5 million fewer young adults would be living at home today. The primary driver behind this phenomenon is escalating housing costs, rather than a lack of employment opportunities. Seven out of ten adults aged 25-34 living at home are employed, indicating that the basic economics of independent living are increasingly out of reach.

Moreover, the median home listing price nationwide, at $430,000, is 34% higher than pre-pandemic levels, while the median asking rent of $1,673 has increased by 17.9%. This is compounded by an estimated 4-million-unit housing supply gap. The impact is particularly pronounced among younger demographics, with over half (57.6%) of 18-24-year-olds, totaling 17.6 million individuals, residing with their parents in 2025, up from 52.1% in 2000.

This age group accounts for about 70% of all adult kids living at home. The delay in achieving independence is evident: by age 22, nearly half (49.3%) remain at home, and by age 24, 35.2% are still living with parents, a notable increase from 29.6% in 2019. This suggests a growing delay in young adults establishing their own 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 at Realtor.com. Jones further elaborated on the contributing factors, stating, "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 concluded by describing the situation as a dichotomy: "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.