Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Gen Z Earn More Than Millennials But Stay Home Longer, Study Finds

Gen Z adults aged 20-24 are earning 15% more than millennials did at the same age, yet a record proportion are still living with their parents. High rents and house prices are cited as key reasons for this trend, according to new research from the Resolution Foundation.

The study found that those born between 1996 and 2000 have annual incomes £3,700 higher than those born between 1986 and 1990 at the same stage in life. Despite this income boost, 63% of young adults aged 20-24 now live in their family home, an increase of 12 percentage points since 2011. Among 25-29 year olds, 24% remain at home, up from 19% in 2011.

The report highlights that high rents and house prices are pushing more young people to stay with their parents. In 2012-14, a third of those aged 24 or under were private tenants, but this figure dropped to 28% by 2022-24.

While living at home could help young people save for a deposit, the research notes that many still require financial support from their parents to buy their first property. Around one-third of first-time buyers last year had parental help, which is about 20 percentage points higher than two decades ago.

The findings are relevant for UK letting agents and inventory clerks, as they indicate a shift in demand for private rentals among younger adults and highlight ongoing affordability challenges in the housing market.