Last Updated on Thursday, 21 November, 2024 at 9:31 am by Andre Camilleri
Dr Lina Klesper is International Legal assistant at PKF Malta
Across Europe, more young people are either staying in their parental homes longer or moving back after brief attempts at independent living. This phenomenon, often referred to as “nesting” reflects the difficult balancing act between delayed independence and the harsh realities of escaping (working) poverty. In Malta, the trend is particularly pronounced. The country has the highest percentage of young people aged 15-29 living with their parents, at a staggering 95%. Even among those aged 25-34, nearly half still reside in the parental home, a figure that places Malta among the highest in Europe. Rising costs of living, stagnant wages and limited housing options make the dream of independence seem increasingly unattainable, forcing many to seek refuge in the familial safety net.
In 2022, Eurostat reported that the average age for young Europeans to leave their parental homes was 26.4 years, but this figure masks significant regional disparities. In countries like Sweden and Finland, young adults often move out by their early 20s, supported by robust welfare systems and affordable housing. Conversely, in southern Europe, where family ties are traditionally stronger and economic opportunities scarcer, the average age climbs past 30. Malta’s average, at 30.1 years, places it among the highest in Europe. This is more than just a cultural preference – it is a direct response to the challenges of living independently in an increasingly expensive world.
According to surveys, the decision to stay in or return to the parental home is primarily driven by economic realities. Across Europe, skyrocketing housing costs have outpaced wage growth, leaving even those with stable employment struggling to make ends meet. The post-pandemic housing market, characterised by limited supply and soaring demand, has further exacerbated the problem. Employment instability adds another layer to the issue. While youth employment rates have recovered in recent years, many young people find themselves only on temporary contracts and in precarious jobs with low pay or limited security, making it difficult to commit to renting or buying a home.
Social and cultural norms also play a role in shaping the nesting phenomenon. In Mediterranean countries like Malta, Italy and Greece, living with one’s parents well into adulthood is often seen as a natural stage of life, rather than a sign of failure. Strong family bonds mean parents are generally willing to support their children financially and emotionally for longer, offering a buffer against economic hardships. However, this support can come at a cost for parents. The burden of financing both their children’s futures and their own later years is a growing concern, particularly given that state pensions in most countries, including Malta, are insufficient to guarantee a decent standard of living.
The Covid-19 pandemic intensified this trend, as many young people returned to the safety of their family homes during periods of lockdowns and economic uncertainty. Although the immediate crisis has passed, the economic aftershocks remain. Rising inflation, coupled with persistent housing shortages, has left many unable to afford the costs of living alone. While some young people see this as a temporary setback, for others, it has become a longer-term reality.
Internationally, the phenomenon of nesting is not confined to Europe. In the United States, nearly 31% of Gen Z live with their parents, driven by unaffordable housing and a challenging job market. Globally, the trend points to a shared struggle among younger generations to navigate the transition to adulthood in an era defined by economic precarity.
The consequences of this trend are complex. On the one hand, living with parents can provide young people with a crucial financial safety net, allowing them to save for future goals like homeownership or higher education. It also offers emotional stability during uncertain times, a benefit that should not be underestimated. However, there are downsides. Prolonged reliance on parents can delay personal growth and financial autonomy, leaving young adults ill-prepared for the responsibilities of independent living. For parents, the financial strain of supporting adult children can jeopardize their own retirement plans, creating intergenerational stress.
Addressing this issue requires systemic change. Governments must prioritise affordable housing by investing in new developments and offering subsidies for first-time renters and buyers. Labour market reforms, including raising wages and improving job security, would help young people cover living expenses independently. Expanding access to financial support programmes, such as tax benefits for renters or subsidies for utilities, could also alleviate some of the burden.
For young Maltese, the question remains: how can we create a future where leaving the nest is a choice, not a necessity? As Malta grapples with this issue, it must look both inward and outward, drawing lessons from countries that have successfully tackled similar challenges while addressing the unique cultural and economic factors at play. Only by doing so can we ensure that the next generation has the resources and opportunities they need to spread their wings.
