Millions of young adults who moved back with their parents this year could lead to an estimated $726 million in lost rent, according to a Zillow analysis, which noted that the ripple effects "could have far-reaching consequences for the housing market."
Amid high U.S. unemployment in the coronavirus pandemic, the number of adults living in a parent's or grandparent's home grew by more than 2.7 million in March and April, said Zillow, adding that the vast majority of those who moved home — about 2.2 million — are from Generation Z and are between 18 and 25 years old.
Zillow said the 2.2 million Gen Zers represent an estimated $726 million in rent payments each month — about 1.4% of the rental market at risk. "It is highly unlikely that all leases will be broken and this full amount would go unpaid, but it serves as a gauge of the potential impact on housing," the Thursday report said.
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Christine Simmons
Christine Simmons writes about the New York legal community and the business of law. Email her at [email protected] and find her on Twitter @chlsimmons
