Are You a Part of the Boomerang Generation Too?

Choosing where to live after college can be tricky. Depending on one’s priorities, some options might be more feasible or appealing than others.

Recent graduates, called “Zillennials” (the cohort between Millennials and Gen-Zers), have to consider a new set of influences. With the COVID-19 pandemic reaching peaks around their graduation, as well as the general stress of adulting, housing choices have been a challenge.

In order to make sense of their housing decisions, we wanted to take a closer look at Zillennial post-college living situations. Just as with any graduating class, some choose to move back home and others opt to leave the nest. Keep reading to find out what we learned about why Zillennials make certain housing choices after graduation.

Why They’re Moving Out

Most Zillennials aren’t returning to their childhood home after college. Rather, around 75% of them decide to move out—but it’s not because they’re more content that way.

In fact, approximately four out of every 10 graduates are unhappy with their current living situation. Even further, 43% of the dissatisfied graduates report feeling hatred toward their post-college housing arrangement.

Still, a few key factors contribute to their decision to stay put. Here are the primary reasons why graduates are leaving the nest:

1. Freedom

Of the Zillennials who don’t return home, 63% make their choice in order to gain independence. In their eyes, living at home would obstruct their freedom and prevent them from becoming true adults. Those who put independence first are willing to make sacrifices, prioritizing fewer costly amenities in their search and putting up with general dissatisfaction with their situation. To them, increasing their freedom is worth the loss.

2. Financial Stability

Money is also an important factor in the decision to move away from home. Among the Zillennials who choose not to live with their parents after college, 40% are able to pay their own way. Having the means to afford their own rent and other expenses plays a significant role in a graduate’s choice to move out.

3. Employment

Whether someone is employed upon graduation is another consideration in their housing choices. 30% of graduates who move away from home report doing so in order to be closer to their place of work. To break the data down by employment status, 53% of the graduates who move out after college are employed while only 23% are unemployed. In other words, graduates with jobs are twice as likely to move away from home.

Why They’re Returning Home

Although the majority of Zillennials choose to move out after college, 25% of graduates opt to stay at home. Many of them have concerns about independence and privacy, but there are other overriding needs on their minds. These are the most notable factors influencing the decision to move home:

1. Cutting Costs

The biggest reason why graduates move back in with their families after college is to cut costs. Especially with the lack of job security amid the COVID-19 crisis, the next generation has been searching for ways to save and manage their money. In addition, the rise in remote work this past year likely made it tempting to avoid the financial strain of moving out. Among those who return home after college, 74% claim saving money factored into their choice.

2. Staying with the Family

Another reason why Zillennials remain in the nest is to stay with their families. 26% of those who move back home share this concern, emphasizing the importance of familial closeness for a number of graduates. This post-college preference for a return home is not new, but the need to quarantine during the pandemic likely heightened the desire to be around family.

Similar to past generations, Zillennials have had to decide whether to move back home or find a new place to live after college. In making their choice, they often consider the impact each situation would have on their independence, finances, familial closeness, and a variety of other factors.

What separates Zillennials from previous generations is their unique circumstances. COVID-19 has shaken up the usual post-college housing process, making the job market unstable and the living choices limited. While the global trends have affected some Zillennial housing decisions, many still move out no matter what it takes. When it comes to post-college housing, there’s no stopping the next generation of renters.