While the number of 25 to 34-year-olds moving back in with their parents has been rising since 2021, apparently, so has the reverse trend.
According to data from the Pew Research Center, 9% of multigenerational households were headed by young people ages 25 to 34, up 6% from its 2001 data point.
Multigenerational living, which is when at least two adult generations live in the same household, has increased among all age groups over the last five decades, data also shows.
“My mom used to come and stay with us in the summertime when she was alive, and I loved it,” “Making Money” host Charles Payne reacted on “The Big Money Show” Wednesday. “I loved the whole thing. We’ve got a big empty house right now, but we do have relatives over all the time. They’re invited, we like them to sleep over and everything. I love this whole thing.”
But, Payne also pointed out: “I don’t like that it’s being forced by economic reasons, but I do love it in terms of the family.”
As some successive generations may claim rising student debt and college costs as the main reason they move back home with mom and dad, Pew Research reports parents exhibiting the “reverse-boomerang effect” cite high housing and child care expenses – and are more likely today to still be working and without serious health issues.
Earlier this month, the U.S. economist famous for predicting the 2008 housing crash indicated his belief that home prices could plunge another 15% this year.
In a recent analyst note, Ian Shepherdson – the founder and chief economist of Pantheon Macroeconomics – suggested that home price declines will accelerate further in 2023 as a result of low affordability and growing inventory.
“We estimate that single-family home prices have fallen by 5.4% from their recent peak in May 2022, but they still need to fall by a further 15% or so before they return to their long-run average, compared to disposable incomes,” he wrote in a recent note to clients.
In terms of child care, the Child Care Aware of America organization reports the average annual child care cost for ages four and under in 2020 was $10,174, which is 35% of a single parent’s average income.
Since the Great Recession, the cultural focus has primarily been on the rising number of young adults living with one or both parents. It’s reportedly the fastest-growing sector of multigenerational households, Pew also noted.
“I have a friend who just built a house and he put a section for his parents. The only thing is: he’s charging them rent,” Payne explained. “I charge my kids rent, I would charge them rent, but not my parents. I just feel weird, I just feel like you did so much for me, mom!”
“Economically driven, it’s not a good thing, obviously,” he continued. “But I think in terms of family and particularly as I think we have a serious family issue in America, I love to see it.”