According to Fox Business, one in three adults are living with their parents, not because of unemployment, as 70% are noted to have jobs. In 2025, 25.2 million adults under the age of 35 lived with their parents.
The problem appears to be the rise of housing costs as entry-level properties are few and far between. Hannah Jones, senior economist at Realtor.com, affirms the problem lies in the lack of affordable housing.
Prospective homebuyers are facing the highest borrowing costs in nearly a year, with 30-year fixed rates climbing near 6.6%, reports Associated Press.
Mortgage rates are influenced by many factors, but this rise is mainly contributed to the ongoing war in Iran. Because of the expected inflation following crude oil prices rising, long-term bond yields, including the 10-year U.S. Treasury note yield, were raised. That affects mortgage rates since lenders base how to price home loans off the Treasury yield.
Richard Stern, an economist and vice president of the Plymouth Institute for Free Enterprise at Advancing American Freedom, says even if a person secured a rock-bottom rate years ago, they aren't immune.
"Even if you bought a home and you got it at a great rate of 3%, it means you're locked in. It means if you ever want to sell your home, move, downsize or whatever, you'd have to pay a rate that's a lot higher," Stern states.
He adds that high interest rates bleed into far more than just housing — hitting credit cards, auto loans and everyday business financing.
"Everywhere that you do business — the restaurants you go to, the stores you buy from — they all pay for their expansion usually through financing. So, when interest rates are high, it stunts growth," Stern states.
That lack of business growth can ultimately lead to fewer local jobs, less innovation and higher prices on store shelves, making high interest rates everyone's problem.
