High rents and debt: 3 young people explain why they moved back in with their parents

When Keara Callahan’s longtime relationship ended in 2023, she knew she had to make some big changes in her life.

At the time, she was living in Miami while working remotely as a government tech consultant. Her pay was good, but on her own, it wasn’t enough to make living alone in such an expensive city feel feasible — or financially responsible.

Callahan decided to move back in with her parents in Northern Virginia. While practical, it wasn’t an easy decision, she told Business Insider.

“At that time, I was 25, and I thought moving back home would be embarrassing,” she said. “I had built and shared this picture-perfect life online — moving to big-city Miami, living in a nice apartment — when, in reality, things hadn’t worked out that way.”

A 2025 Pew Research study found that in 2023, 18% of adults ages 25 to 34 lived with their parents. For many young adults like Callahan, the decision is a financial strategy. Rising costs, high student-loan debt, and a shortage of affordable homes have made it increasingly difficult for young Americans — many of whom haven’t built the same financial security as their older peers due to a number of factors — to live independently.

Callahan said that, while moving back into her childhood bedroom initially felt embarrassing, it was a saving grace.

“I studied economics in college, so I knew it was the best thing for my budget,” Callahan said. “I wouldn’t have to pay rent, I could save money, and I could build up my nest egg.”

Callahan was able to quit her job and travel

Housing is often one of the biggest expenses in a person’s budget —and in a city like Miamiit can be especially hard to keep up.

Data from Zillow shows that as of June, the average rent in the city was $3,200 — more than $ 1,000 above the nationwide average rent of $2,003.

Letting go of her Miami apartment and moving back in with her parents is saving Callahan thousands of dollars each month. Because she isn’t spending so much of her income on housing, she’s been able to build up sizable savings.

That financial cushion allowed her to quit her government job and pursue a new career as a content creator. With more disposable income, Callahan has also traveled the world, visiting countries throughout Southeast Asia, the Middle East, Europe, and Latin America.

In a few months, Callahan plans to move back to Miami into an apartment by herself. This time around, she isn’t worried about affording rent.

“I wouldn’t have been able to save up as quickly without having my parents’ home as a place to land,” she said. “I feel like I’m finally on a good path. Sometimes you have to take a risk to reap the rewards of the life you’re envisioning.”

Howland is saving up to buy a home

For some young adults, moving back home is a step toward long-term homeownership.

Take Luke Howlanda 24-year-old from Arizona. After selling his electric-bike retail business in Flagstaff — he declined to disclose the sale price — and moving out of the retail space where he had been renting and living, Howland moved back in with his parents this year.

His decision came down to a single question: Why keep paying rent when he could save money at home and eventually buy a place of his own?

“I’m lucky enough to be able to move back in with my parents,” Howland told Business Insider. “Even though I sold the business and was able to make some money from it, it just didn’t make sense to get right back into a lease or an apartment before I found another job or created another business.”

Howland is giving himself two years to save for a down payment and move out of his parents’ home.

That may be easier said than done. A 2019 Urban Institute study found that adults who lived with their parents between the ages of 25 and 34 were less likely to become homeowners or head their own households a decade later, which could hurt their long-term financial stability.

Howland and his peers face major hurdles to homeownershipincluding higher home prices and mortgage rates. Still, he is determined not to become a statistic.

“There’s definitely an argument to be made that people who move back home can become complacent, but I think it depends on the person,” he said. “For me personally, I have active motivation to leave and work toward homeownership.”

Stewart moved back in to pay down debt

For some young adults, debt is another reason to move back home.

Danny Stewart, a public relations professional, had racked up $10,000 in credit card debt by the age of 26 after getting his first apartment in Chicago and buying his first car.

“I had never had a credit card before,” Stewart, 28, told Business Insider. “With rent being such a large expense, I decided to get one so I could defer some costs and avoid draining the little savings I had.”

Within months, he said, he had opened a second card and started falling deeper into debt. Feeling trapped, Stewart decided to move back in with his parents to improve his finances.

“I realized that if I didn’t do something about my debt, it would only get worse,” he said. “Even though I loved living in the city and having my own apartment, I knew that I had to give it up if I wanted to fix my situation.”

Without $1,500 in monthly rent, Stewart was able to put most of his money toward paying down his debt. He also cut back on going out to bars and dinners, helping him rebuild his savings.

By 2024, his credit card debt was gone. And after nearly a year living with his parents, he moved back into his own apartment.

“It was humbling to move back to my parents’ basement,” he said. “I was angry and embarrassed, but grateful that my parents let me move home so I could figure things out.”