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New Jersey leads the nation with 44% of young adults aged 18 to 34 living at home with their parents, significantly higher than the national average of 33%. This trend is driven by high housing costs, job market instability, inflation, and student loan debt.
The median home sales price in New Jersey reached $558,000 in February, 140% above the national median of $398,000, according to New Jersey Realtors. The state's high housing prices are fueling demand for homes with in-law suites and separate living quarters to accommodate multi-generational families. Realtors report that properties featuring these amenities are in high demand and sell quickly.
The economic pressures are causing many young adults to delay moving out. New Jersey's housing market is buoyed by a strong job market in finance, fintech, pharmaceuticals, and biotech, attracting workers priced out of New York City. However, the affordability gap between New Jersey and New York is narrowing, potentially affecting future housing demand.
As New Jersey continues to lead in this trend, the demand for multi-generational homes is expected to persist, shaping the state's real estate market dynamics.