What's Happening?
Economic pressures are making 'boomerang living'—where young adults return to live with their parents—a common phenomenon, according to Thrivent's Boomerang Kids Survey. The survey indicates that nearly half of U.S. parents with adult children aged 18-35
have experienced a child moving back home. This trend is driven by factors such as unaffordable housing and job loss, with 55% of young adults citing financial necessity as the reason for returning home. The arrangement is often long-term, with many parents expecting it to last at least a year. The survey also reveals that 30% of young adults aged 27-35 do not expect to ever purchase a home, highlighting the impact of economic challenges on homeownership aspirations.
Why It's Important?
The trend of boomerang living reflects broader economic challenges facing young adults, including high housing costs and job market instability. This living arrangement has significant implications for both young adults and their parents, affecting financial planning and long-term goals. For parents, supporting adult children can strain finances, impacting savings and retirement plans. For young adults, returning home can provide a financial runway to achieve goals such as saving for a home. The trend also underscores the need for policy solutions to address housing affordability and economic stability, which are critical for enabling young adults to achieve financial independence.
