Boomerang Kids: Multigenerational Living on the Rise
In a growing trend, a number of young Americans, aged 25-34, are now spending part of their post-college years back home living with mom and dad. These “boomerang kids,” as they’re called, are living at home due to a variety of reasons, including student loan debts, high rents, and other economic factors.
Data from the Pew Research Center reports that the number of boomerang kids living at home has been increasing for some time. Roughly one in four young adults (23.6 percent) lived in multigenerational households in 2012, up from 11 percent in 1980.
Boomerang Kids and Housing Decisions
A new report released last month by the National Association of Realtors suggests that all these boomerang kids are influencing home buying trends, as well. In 2014, 13 percent of homebuyers surveyed reported being part of a multigenerational household and 23 percent cited “children over the age of 18 moving back home” as a primary reason for their home purchase.
For current homebuyers, it’s far more likely a boomerang kid will be the one living in the mother-in-law suite, an additional living quarters on the property usually intended for guests or elderly family members. Furthermore, research from Pew confirms that the number of multigenerational households is on the rise. The Pew study says the number has doubled since 1980 to a record 57 million Americans. That’s more than 18 percent of the U.S. population.
Boomerang Kids and Retirement
Out of the 47 million baby boomer households, eight million are supporting adult children according to Hearts and Wallets, a research organization monitoring retirement trends who spoke to the Huffington Post. A recent story by CNBC even claimed that boomerang kids were ruining their parents’ retirement.
There’s a stark contrast between the financial situation of baby boomers who are providing support to their children and those who aren’t. According to the Huffington Post, 52 percent of baby boomers whose adult children are self-sufficient are now retired. For boomers who are supporting adult children, that number is 21 percent. Having boomerang kids to support also causes many parents to feel more anxiety about money matters and less secure in their retirement plans. Chris Brown, co-founder of Hearts and Wallets, told CNBC these boomers are “more concerned about saving for retirement than outliving their assets.”
How to Survive Boomerang Kids Moving Back Home
In a photo essay and story last summer, the New York Times painted a picture of ambitious young adults who remain optimistic about the future despite challenges and setbacks, so baby boomers may not have their kids living at home for long.