Boomerang Kids Settling in With Parents for Extended Stay

Remember when 20-somethings couldn’t wait to flee their parents’ homes to embrace independence and get their own place? Things change. If you have Gen Y or Gen Z kids, you may need to adjust your downsizing and retirement plans to accommodate your kids. For many, today’s adulting might involve staying with parents for an extended period. According to RentCafe research, 20% of Millennials and 68% of Gen Z-ers take longer to leave home than previous generations and still live with family members. In addition, their stay isn’t going to be short: Millennials (47%) and Gen Z-ers (41%) expect to continue sharing their home with someone else for at least another two years. Fourteen percent of Millennials anticipate the arrangement lasting for at least 10 years, says the study, 1 in 5 Millennials & Two-Thirds of Gen Z Struggle to Leave the Nest. Some may be living with parents for financial reasons—saving for a down payment, for example—while others may do it to care for family members. The largest share of multigenerational households is on the West Coast. Out of about three million Millennials in Los Angeles, 35% live with family members, likely due to the high cost of living. Other top metros with a high percentage of such living arrangements include:

Riverside, CA – 35%
New York City, NY –28%
Baltimore, MD 27%
Buffalo, NY – 26%

Other top 10 cities with the largest share of Millennials living in multigenerational households include Miami, Washington, D.C., Sacramento, San Jose, Detroit, and Cleveland. In some spots, despite the availability of housing options, living costs are a significant factor in young people staying put. For example, Baltimore’s cost of living is 8% above the national average, and Washington, D.C.’s is 52% above the national average. Elsewhere, however, Millennials and Gen Z kids are leaving home, and in 20 of the largest metro areas, Gen Y and Gen Z-ers living in multigenerational households have been decreasing over the last five years. Top five metro areas with the biggest 5-year declines in individuals living in multigenerational homes