Living With Parents Again? Why This Is Gen Z’s Most Underrated Wealth-Building Opportunity

For Generation Z (born between 1997 and 2012), who are now about to enter the working world, this might make sense strategically as a result of escalating city rents and changing definitions of independence. This cohort alone is expected to influence ₹72.28 lakh crore1 in consumer spend, according to a BCG & Snap report, and the concept of independence is being redefined: independence through the benefits of shared household expenses rather than escaping home. During the same time, residential rents have jumped substantially in major metropolitan centres over the last several years, with 35%–80%2 increases from 2020 to 2024 in some areas, making single-city living a more complex financial arrangement on its own.

The Math That Makes It Work

Take Mumbai: a 1 BHK in Andheri costs ₹45,000–₹60,000 monthly. Add groceries, transport, utilities, ₹80,000+ for a solo professional. Live at home? That’s ₹9.6 lakh saved yearly. This isn’t tradition, it’s strategic co-living. 

Gen Z isn’t hoarding; they’re investing. Based on user data, young investors in their twenties are continuing to favour savings. Most of the SIP investors are under 30 years of age3, most of whom are building their 3–6-month emergency fund in under a year. In India, under-30 SIP inflows hit ₹2.9 lakh crore in FY254. As per financial-planning specialists, many renters opt to invest the money they save (as opposed to purchasing) in equity mutual funds, which have historically returned around 12%+5 over a long investment horizon; this could exceed typical home loan interest costs (e.g. ~8-9% EMIs), over a long investment horizon.

From Rent to Real Estate

Homeownership is not disappearing; rather, it is maturing. According to a report on home-buying by 2025, Gen Z survey respondents have the most motivation out of all generations to purchase larger homes; around 70%6 would prefer large apartments, revealing a precise movement away from the Millennial minimalism of a compact 1-BHK.

How to do it?

Skip 5-7 years of rental payments, thus saving ₹50-70 lakh, and take advantage of your parents’ home to have a no-cost launchpad. 

New options:

• Many investment platforms have opened doors to fractional investment in commercial real estate (CRE), with a minimum investment of ₹5-10 lakh, allowing Gen Z investors to begin exposure to the property markets even before buying a home. 

• New rent-to-own models, being launched in Pune and Hyderabad by startups like RentOk and CoLive, are offering young professionals more flexible avenues toward homeownership.  

• Family pooling - Urban parents can co-invest with their children when they buy their first home.

Travel, Hustles, and “Mini-Retirements” 

Savings fuel experiences: 50% allocate 15–20% to travel (MakeMyTrip Gen Z Report). ₹60,000 saved monthly becomes a ₹3.6 lakh Bali-Singapore fund in six months.

Side hustles explode: 94% explore freelancing, content, or crypto (17% hold digital assets). Indian Gen Z are making an income of ₹20,000–₹50,000 every month from their childhood bedrooms through platforms like Upwork and Instagram.

Hidden ROI: Skills, Sanity, Networks

In addition to cash:

• Financial literacy from parental mentorship (69% reported reduced money stress).  

• Home-made meals, saving ₹15,000 a month on takeouts.

• Mental space, devoid of the unnecessary stress of being a landlord or tenant, resulting in more bandwidth to learn and develop skills (40% more people enrolled in Coursera who live at home). 

The Rules for Winning

• Contribute (groceries, utilities, or “rent”).   

• Set exit timelines—83% of successful boomerangers move out in 3 years.   

• Track goals—use a budgeting app to see where your money’s going.

• Invest Monthly—Start a SIP in mutual funds. Your expenses are lower now, so it’s the perfect time to build wealth early.

Living with parents isn’t “ghar baitho”; it’s Ghar SE Utho. Gen Z isn’t postponing adulthood; they’re engineering it. By turning ₹50 lakh+ in rent into equity funds, adventures, and entrepreneurial fire, the boomerang generation proves: the fastest way forward often starts by going home.

Disclaimer: An Investor education and Awareness initiative of Aditya Birla Sun Life Mutual Fund

All investors have to go through a one-time KYC (Know Your Customer) process. Investors to invest only with SEBI registered Mutual Funds. For further information on KYC, list of SEBI registered Mutual Funds and redressal of complaints including details about SEBI SCORES portal, visit link : https://mutualfund.adityabirlacapital.com/Investor-Education/education/kyc-and-redressal for further details.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully

1. https://www.fortuneindia.com/macro/gen-z-population-accounts-for-7228-lakh-cr-in-consumer-expenditure-bcg-snap-report/118819https://www.magicbricks.com/news/rents-cooling-at-last-more-homes-and-metro-reach-are-bringing-relief/141185.html

2. https://economictimes.indiatimes.com/mf/mf-news/half-of-mutual-fund-investor-base-is-in-age-bracket-of-18-to-30-years-report/articleshow/123237188.cms

3. https://www.amfiindia.com/Themes/Theme1/downloads/AMFI_AnnualMFReport2025.pdf

4. https://www.financialexpress.com/money/mutual-fund-returns-soar-should-you-stay-invested-or-pay-off-your-home-loan-3687859/

5. https://www.knightfrank.com/research/report-library/beyond-bricks-the-pulse-of-home-buying-2025-12177.aspx