Almost half of Gen Z considered moving during COVID – here’s how many actually did

The younger generations have been confronted with many difficulties because of the pandemic, which for many caused a halt in their projects or even completely upset their financial independence. Part of this has resulted in a reexamination of their living conditions, and a new survey shows that nearly 50% of Gen Z adults – those between the ages of 18 and 24 – have in fact considered returning home.

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New GOBankingRates survey reveals that of half of Gen Z respondents who have considered returning home with their family, 18.6% say they have done so and still live with them, and 13.9% say they did but moved.

Carter Seuthe, CEO of Credit Summit, told GOBankingRates that Gen Z is currently facing a major financial and real estate crisis that could turn out to be worse than the one millennials faced when they entered the market. job.

“The minimum wage is not a living wage. Rent is over 60% of most people’s income, although you can even find an apartment. Prices keep rising while wages stagnate. And that doesn’t even mention that the selfish behavior of many Americans puts workers at risk of catching COVID, ”Seuthe said. “Yes, every generation has had its challenges, but Gen Z is inheriting something fundamentally broken. Is it any wonder that they are going home? Saving for a year or more is the only way many of them can hope to see upward mobility due to a lack of well-paying jobs.

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The sentiment is shared by Jake Hill, CEO of DebtHammer, who said he was not surprised by the discovery and also compares the phenomenon to what millennials faced during the financial crisis.

“Many millennials graduated amid the stock market crash and recession. They couldn’t find a job and had no choice, ”Hill said. “Zoomers operate in an even more hostile world where it is dangerous to have many jobs, rent prices are astronomical and in some cities it is impossible to find vacant homes. When you spend 60-80% of your take-home pay, why wouldn’t you go home if your parents allow it? Even if they charge you money every month, it will be a lot less than a homeowner.

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The GOBankingRates survey further notes that 16.6% of Gen Z respondents say they have not returned with their family but have considered it, while 20.7% of them say they have not returned and not have considered it.

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“If I were still a Generation Z, I would have gone home during the pandemic too. Normally young people may be ashamed to go home, but it was a guilt-free opportunity to cut spending, reconnect with family and save for the future, ”said Pri Gupta, financial blogger and managing director. financial services consulting. “While I don’t expect Gen Z to continue living with their parents when the world reopens, those who seized the chance to save and invest will leave with permanently altered financial habits. We have already seen a record number of new investors in the stock market and Gen Z will likely continue to spend some of their previous discretionary spending on investments, ”added Gupta.

Importantly, the survey also shows that 30.7% of Gen Z respondents have always lived with their family – so they haven’t moved for the first time yet.

One of the perks of coming home is the ability to save for homeownership, as evidenced by a Zillow survey, which finds 3 in 5 Gen Z people plan to use the money. saved during the pandemic for a down payment on a house. Even in an unprecedented global pandemic, homeownership still seems to be a priority and an aspiration.

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In addition, nearly three-quarters of Gen Z prefer to buy a home for long-term rental, with a significant number of these future owners planning to enter the housing market within the next five years, according to a Realtor survey. .com. The survey also notes that 64% of Gen Zers said their COVID experience had no impact on their homeownership plans. More than a quarter of those polled are even more convinced of buying a home in the wake of the pandemic. However, with many Gen Z members either in their college years or early in their careers in the face of the economic uncertainties of the pandemic, job stability is their No.1 barrier to buying. according to the Realtor.com survey.

Another factor that may have played into GOBankingRates’ findings is the fact that aside from rent, food – including take out and dining out – dominated Generation Z’s spending habits.

Indeed, 26.1% of Gen Z respondents said this is where they spend the majority of their money (rent not being a factor).

The other top spending categories for Gen Z respondents include saving or investing, at 15.9%; entertainment, including video games and streaming platforms, with 12.5%; utility bills, with 11.3%; credit card bills, with 10.3%; student loan repayments, with 8.2%; and car / car costs, with 7.1%.

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Last updated: September 15, 2021

Methodology: GOBankingRates surveyed 1,000 Americans aged 18-24 nationwide from August 19-20, 2021, asking six different questions: (1) Where did you hear about personal finance? ; (2) What is the total amount of your debt now? (Including student loan debt); (3) Are you investing your money? If so, what are you investing in? Select all that relates to it :; (4) If you had to pick one, what do you prioritize / value the most in a potential job? ; (5) Did you move back in with your family during the coronavirus pandemic ?; and (6) What do you spend most of your money on, other than rent ?. GOBankingRates used PureSpectrum’s survey platform to conduct the survey.

This article originally appeared on GOBankingRates.com: Almost half of Gen Z considered moving during COVID – here’s how many actually did