Young adults moving back in with parents to save up money

PHOENIX (3TV/CBS 5) -- It’s a trend millennials and people in Gen Z are following. After college, people are moving back home to save money instead of renting.

Cory Kukkola was born and raised in the Valley, and earned a scholarship to place baseball at a college in Minnesota. He graduated debt-free but didn’t have enough money to buy his own place. So he worked out a deal with his parents, and he lived at home for a year and a half. “It helps when they live at home and they give the ‘we love our son’ kind of rent payment,” Kukkola said. “It isn’t the most exciting thing to do right after college, but looking at back I know I’m going to be so grateful.”

The 26-year-old just bought his own condo in Scottsdale. Kukkola said he wouldn’t have been able to save up a down payment if he hadn’t lived at home for the last year and a half. “I’m super excited and finally relieved it happened cause its not easy getting to this point for sure,” he said.

He said his sister and some friends also live at home post-graduation to save money. It’s a trend Valley realtor Liz McDermott is seeing more of. “More of the younger generation are getting smart with their finances and are motivated to own something rather than pay someone else’s mortgage,” McDermott said.

She says the rising cost of rent is forcing young adults to find other ways to save. While some people move in with their parents, others are renting places with friends to divide the cost.

Kukkola says saving up money at home for more than a year put him on a path to afford his own place. He advises other young adults to live at home or find the cheapest ways to rent. It’s the new norm for people trying to save up. “Doing this for us, me and my buddies has given us a freedom financially speaking to start our lives,” he said.

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