Nearly half of young adults in the US are living at home with their parents, and all that saved rent is fueling a luxury boom

A record number of young adults in the US are currently living at home, and all that savings is sparking a luxury boom.

According to recent data from the US Census Bureau, nearly half of young Americans are living with their parents. Morgan Stanley analysts wrote in a Friday note that that is a historical high not seen since the Great Depression.

Almost half of young adults are living with their parents in 2022, the same percentage as in the 1940s, according to analysts.

The levels of young adults living at home peaked in 2020, around the time of the COVID-19 Pandemic. The data was compiled from a number of sources.

Saving on rent and groceries is freeing up disposable income for discretionary spending, which is good news for luxury retailers.

"This is not the only reason luxury goods consumers are getting younger in the West (social media playing also an important part) but we see it as fundamentally positive for the industry."

Delayed marriage, high rental costs, and other factors are keeping young adults at home.

According to a December 5 survey by Property Management.com, 39% of young adults said that they moved in with their parents because they couldn't afford rent. The survey was conducted online on December 1.

Similar themes are emerging among British youth

In the United Kingdom, 42% of young adults lived with their parents in 2011. Based on data from 1996 onwards, that is the highest level on record.

According to data from the Federation of the Swiss Watch Industry, imports of luxury Swiss watches into the UK increased in the first half of the year. The average cost of a watch is about $6,000. The Guardian reported that sales of watches under $2,500 were falling.

The brand reported an increase in sales in the third quarter. Thanks to robust demand from Europe, the United States, and Japan, luxury-goods maker LVMH reported a 19% increase in third quarter revenues.

According to an Insider Intelligence report on September 14, the luxury goods sector in the US and China has bounced back, but the economy is going to get worse.