Coldwell Banker released results from a survey about how parents feel when their children move back home, and the results are not particularly surprising: More parents are now fine with their children moving back home than in recent years.
The Wall Street Journal points out an obvious reason: Both parents and adult children were hurt by the recession, so there’s a measure of understanding between them. Joblessness for people aged 18 to 25 is higher than the national average and has been for several years. Respondents whose children are older or significantly younger had different expectations.
CNN Money points out the negative effects on the housing market. Homeownership for adults under the age of 35% is historically low. The lack of buyers in this age group has seen an increased supply of homes, particularly so-called starter homes.
A blogger at Coldwell Banker points out that not all boomerang kids are bumming off their parents. Many use the time at home to save up money so that they can be financially stable. By saving on rent, groceries, and bills, many are able to pay off student debt and save up for a down payment on a house.
Regardless of reason for staying with their parents, boomerang kids reduce the number of homebuyers in the market, and analysts agree the trend hurts the overall housing economy. Are you a boomerang kid? What is your exit strategy, or are you happy at home?