The Cost of Moving Out of Your Parents’ House

Rent devours paychecks, and transportation and student debt compound costs

Moving out can be a milestone of independence, but it comes at a steep cost. From rent and student loans to car payments and groceries, the numbers show how quickly a paycheck disappears.

The single biggest cost is rent, which averages $2,049 per month — more than 42% of a typical young adult’s gross income. Rising rents have outpaced wage growth in many urban centers, putting pressure on younger renters.

In addition, with car expenses averaging $1,098 and student loan payments at $536, many young adults are paying more for these two categories than for food or health care. Transportation is often the second-largest expense after housing, especially in areas lacking robust public transit.

Taken together, essential bills eat up 89% of the typical young adult’s gross income, leaving less than$600 before taxes.

Child care is an added expense

Adding a child to the household increases the financial burden dramatically. (Child care costs are not included in the main chart.) At $1,094 per month, child care pushes the total cost of living above a typical income. However, this calculation does not account for a second income from a partner, which is often the case for parents and can ease financial strain. This might help explain why many young adults delay having children or return to multigenerational households.