Boomerang living becomes financial strategy as economic strain reshapes housing paths

Mounting affordability challenges in the US housing market are accelerating a shift toward multigenerational living, with new data suggesting “boomerang” arrangements are becoming a financial necessity rather than a fallback.

Thrivent’s latest survey found that 44% of parents with children aged 18 to 35 have had an adult child move back home, reflecting the growing scale of the trend.

The shift comes as housing conditions remain difficult despite a cooling market. While home price growth has slowed, buyers are still contending with elevated borrowing costs, high prices, and steep down payment requirements, leaving many unable to enter the market.

As a result, returning home is increasingly viewed as a practical financial step.

"Adult children moving back in with their parents has shifted from stigma to strategy – for both parents and kids," said Gene Elder. "Five years into Thrivent's survey, we've found that boomerang living is not a blip; it's becoming a lasting part of how families plan their money and keep moving toward their long-term financial goals."

Financial pressure is the primary driver. Among young adults who have moved back, 55% say the decision was necessary, while another 27% cite clear financial advantages.

Housing affordability remains a central barrier, with many facing a combination of high rents and limited savings capacity. Even as rents have eased slightly from peak levels, they remain significantly higher than just a few years ago, continuing to restrict the ability to build a down payment.

The longer-term impact is reshaping expectations. Among adults aged 27 to 35 who have not yet purchased a home, 30% say they do not expect to ever do so.

At the same time, confidence in near-term homeownership is weakening more broadly. Only 25% of non-homeowners expect to buy within five years, with many pushing timelines further out or abandoning plans entirely.

For families already navigating boomerang living, the arrangement is often extended. More than half of parents expect their adult child to remain at home for at least a year.

Younger adults are using the time to stabilize finances. About 34% say living with parents helps them save for a future home purchase, while many anticipate achieving financial independence within the next decade.

However, the arrangement carries financial consequences for parents. Nearly half report experiencing strain from supporting an adult child, and many are adjusting their own spending, or even long-term savings, to help.

A majority of young adults say their parents have not discussed how the arrangement affects long-term financial planning.

With affordability pressures keeping buyers sidelined and delaying homeownership, boomerang living is increasingly becoming a structural feature of the financial landscape rather than a temporary response.