There is nothing wrong with living with your parents until you actually need the extra space, perhaps until after you get married and/or have a child. I think such arrangements should be encouraged and not looked upon as some kind of failure. It's good for the finances of everyone and also good for the environment. Financial independence is achieved quicker by pooling resources and saving money. You are not truly independent until you have achieved financial independence. If Mommy and/or Daddy is helping you with any bills at all while you live in 'your own place', you're not independent! The kids will have the chance to live totally independently for many decades during their lifetime. That extra few years living at home can allow them to build a great financial foundation. For anyone who claims to feel strongly about global warming and the environment, I would like to hear how you justify faster household formation by having the kids move out earlier.
As young adults, just starting out in their careers, with limited experience, it should be normal for them to make a lot less and work much harder. For those who disagree with that, then they should blame their parents for bringing them up feeling so entitled and special.