The Homebody Economy
The many reasons for young people to stay home, and how brands can cater to them at home and beyond
Everybody is becoming a homebody.
A recent study by Princeton professor Patrick Sharkey revealed that Americans are spending 10% more time at home in 2022 compared to 2003. Post-pandemic, people are still spending more time at home, as the trend that rose sharply during the pandemic has yet to return to more typical levels by 2022 — a sign that the pandemic may have hastened a cultural shift already in progress.
Millennials and Gen Z, in particular, are leading the charge. Those ages 15 to 34 have had the greatest increase in time at home, spending roughly two more hours at home on a typical day in 2022 compared with 2003. This shift is driven in part by the prevalence of remote and hybrid work among younger knowledge workers. But the deeper roots of the younger generations’ homebound preference go far deeper than simply that.
In fact, this is not just a phenomenon exclusive to the U.S. A social phenomenon in Japan known as Hikikomori, where young adults become modern hermits and withdraw from society, offers an extreme example of what the future of a growing homebodies may turn into. The Japanese government estimates the country has 1.5 million Hikikomori, and
This trend has naturally spurred its own “homebody economy,” consisting of various brands and services catering to the home-centric demands of the younger generations. For example, Axios noted a whopping 148% increase in searches for “dinner party” on Evite, as the so-called lonely generation spurs a dinner party boom. Dating apps and Snapchat flirting mean they don’t have to leave the house to find a partner, while DoorDash, Netflix and TikTok can deliver a night’s entertainment to their doorsteps.
The growing homebody economy will entail significant implications for brands and businesses, especially those in industries dependent on in-person engagement. The growing preference for staying home is driving brands to focus on home-centric products, digital experiences, and marketing strategies, while also pushing businesses reliant on in-person interactions to adapt creatively.
Reasons for Staying In
To better understand this growing homebody economy, we must first understand why this trend is happening.
The digital world has evolved to offer nearly everything one could need for a fun evening from the comfort of home. Dating apps and social media have transformed how relationships are formed, making it possible for people to flirt and connect romantically without ever stepping outside.
Many young people have gotten used to virtually socializing with friends while playing online games like Fortnite and Roblox together. Meanwhile, services like DoorDash provide restaurant-quality meals, while streaming platforms like Netflix and the endless scroll of TikTok deliver instant entertainment. In short, the convenience of the digital world is offering everything they need to socialize, eat, and be entertained in a self-contained, digital-first environment.
Going out has become increasingly expensive, with rising costs of food, drinks, gas, and other expenses turning casual social outings into activities that require careful budgeting. The loss of third places — informal public spaces where people can gather and socialize — exacerbates this issue. As dying malls and many public spaces become monetized, Main Street businesses are increasingly targeting the top 20% of consumers with disposable income, leaving the rest, particularly young people in entry-level jobs, unable to afford frequent social outings at bars or restaurants.
Making matters worse, many third-place businesses have either closed or pivoted to business models that require fewer physical spaces to limit overhead cost. For instance, Starbucks, once a popular spot for socializing and working on laptops, is now shifting many of its locations to mobile order pickups only, closing traditional cafes.
Lingering social anxiety following the pandemic has been a source of discomfort for Gen Z. Many would rather stay in the familiarity of their home than venture out into the unknown. In fact, Gen Z participants in the study shared that social interactions in public spaces like bars can feel daunting, particularly for those who became accustomed to isolation during the lockdowns.
In terms of nightlife, the younger generations also have less incentives to go out in general, thanks to a generational shift in the definition of a “good time.” As Gaby Hinsliff wrote in The Gaudian earlier this year:
Going out to get wasted isn’t the draw it was, either, for a generation less likely than their predecessors to drink or take drugs. More broadly, they seem less ready to sow wild oats than previous waves of teenagers. Long before lockdowns curbed their liberty, risk-taking behavior expressed in teenage pregnancy and youth offending was steadily declining in both the US and the UK, as, more surprisingly, was the number of young people holding either a part-time job or a driving license — both once regarded as keys to freedom.
Lingering social anxiety following the pandemic has been a source of discomfort for Gen Z. Many would rather stay in the familiarity of their home than venture out into the unknown. In fact, Gen Z participants in a recent study shared that social interactions in public spaces like bars can feel daunting, particularly for those who became accustomed to isolation during the lockdowns.
Moreover, climate change is also making weathers more difficult to predict and plan for, while widespread climate anxiety is also making the mental health issue worse. Staying in seems like a much simpler, safer, and more comfortable option.
Extending Home Beyond the Home
Make no mistake, young people are still drinking and socializing. Instead of going out to bars and clubs, however, they’ve become accustomed to doing so in backyards and living rooms. This has prompted a whole new dimension of the homebody economy beyond the home. In response, bars, cinemas, and other public venues are beginning to create more welcoming, home-like atmospheres to appeal to the younger generation of homebodies.
As Kate Bernot reports in Bon Appetit, entering The Carriage, a wine bar in the college town of Florence, Alabama, is designed to feel like stepping into a friend’s living room. Rugs are strewn on the floor, and patrons can kick back on the plush couches while sipping on their oversized beverages with a “living room pour.” Patrons are encouraged to move around the comfy space as they wish, even at the detriment of the bartender trying to keep track of the customers.
Cinemas are also trying to draw out the homebodies and compete with the comfort of binge-watching at home. The top eight movie theater chains in the U.S. have committed to invest more than $2.2 billion in total over the next three years in modernizing and upgrading their cinemas. The money will go toward everything from improving the screens, projection, sound, concessions, theater seating, and air conditioning, to adding amenities like bars, restaurants, and arcades — and in some cases, even adding amenities like pickleball courts and daycare services, aiming to become more of a full-fledged entertainment center.
High housing cost are also currently keeping around one-third of U.S. adult Gen Z living with their parents. Therefore, it is perhaps not surprising to learn that some young people have started using their connected cars as an alternative lounge space to get some “me time” away from their family, without even driving anywhere.
How to Build a Homebody Brand
More brands and businesses will need to cater to a nation of consumers that are increasingly choosing to stay home over going out, prompting new thinking in media planning, brand messaging, and product design.
The starting point should not be trying to moralize the homebody tendencies of the younger generations and hastily connecting it to the loneliness epidemic. It’s essential to recognize that these habits are not simply a result of laziness or widespread mental health issues but are instead driven by larger socio-economic factors that will take years, if not decades, to reverse. Understanding this context is key for brands to create genuine, effective strategies that resonate.
For brands, traditional advertising strategies that rely on out-of-home engagement or event-driven marketing may no longer be as effective. With fewer consumers venturing out to public spaces, there’s a need to invest in media planning that targets home-based audiences.
Brands should prioritize digital platforms where home-focused consumers spend their time, such as streaming services, social media, and gaming platforms. Interactive ads, influencer partnerships, and content integration on these platforms can help brands engage audiences who are no longer reachable through outdoor advertising or in-person events.
In addition, Collaborations with food delivery and ecommerce platforms like DoorDash, Amazon, or Instacart can help brands position themselves as convenient choices for homebodies. Content that emphasize the ease and comfort of at-home consumption will likely resonate better with younger generations.
At the end of the day, good brand storytelling can bring people together and make brands central to cultural conversations. In today’s media landscape, there’s room for brands to step in and create content and products that not only entertain consumers, but also offering a uniting culture that brings people together, either IRL or online. By prioritizing community-building efforts, companies can make a difference while strengthening their own market position.
