A third of young adults in Michigan have “boomeranged” back to their parents’ homes over the past year, a new study found.
A survey of 3,500 people by ISoldMyHouse.com found over 1 in 3 (35%) of young adults ages 18-35 in Michigan have moved back in with their parents over the past year, compared to a national average of 36%. Aside from free housing, the results showed 16% have received financial support from their parents.
This interactive map shows stats of “boomerangs” across the U.S.
“‘Boomerangers,’ ‘Going Nowhere Generation,’ ‘Growing Ups,’ ‘Failed Fledglings’ — whichever term you choose to associate with the rise in adult kids moving back in with their parents, it has led to significant changes in living arrangements for everyone involved,” according to ISoldMyHouse. “Whether it’s a result of the red-hot real estate market, the pandemic-hit economy or simply a desire to save money by moving back home, many parents whose kids have boomeranged have had to alter their retirement plans and finances in line with having a full nest again.”
Some parents may hope that this current boomerang generation represents a temporary pandemic-bolstered blip, likely to resolve itself as restrictions are eased and the economy expands. However, ISoldMyHouse researchers said the reality is, the pandemic amplified a trend that has been on the rise over the past few decades. Sustainable economic independence has been steadily receding over the past few years, and fewer young adults are getting married.
The average rent for homes increased 7.9% over the past year, according to a Forbes article. In some urban areas, the surge has climbed as high as 12%, ISoldMyHouse said, citing Forbes data. This is a result of urban renters in pursuit of more living space — possibly brought on by spending months on end in their homes during lockdown — as well as ongoing pressure from aging millennials, Forbes wrote. Additionally, house prices have increased 26% over the past year, diminishing any hopes young people may have of getting onto the property ladder.
According to the survey, moving back in with parents is a prudent move — a whopping 2 in 3 (72%) “boomerangers” feel this is the case.
The survey also revealed many parents are not enthusiastic about the situation — 20% of parents in the Great Lakes state say they feel burdened by having to house their non-rent-paying tenants, and 15% say they have had to delay retirement plans in order to support their adult children. Moreover, 1 in 3 parents who had previous intentions to downsize the family home are now unable to do so. In fact, over 1 in 5 (22%) say they are considering upscaling to accommodate their children.
“Although moving back in with parents can be seen as a step backwards,” said Kris Lippi, of ISoldMyHouse.com, “looking at it from a sociological point of view, what has happened is entirely predictable. This generation of young adults have been priced out of the real estate market in a way that their parents never were, and many have lost their jobs due to the pandemic. If moving back in with parents helps young people’s mental and financial health, then it has to be a positive thing to do