While the world has seen several adults ages 25 to 34 move back in with their parents since 2021, a current study reveals that a reverse trend is also on the rise.
There is a surge in the number of parents moving in with their children due to cost-push inflation, mostly in housing and child-care costs.
Nine percent of America's multigenerational households are led by young people ages 25 to 34. This is a six percent increase from 2001, according to a recent survey published by Pew Research Center.
Multigenerational household or living happens when at least two adult generations are in the same household. The study showed that this kind of living has increased in America for all age groups over the last 50 years.
To combat poverty
Referred to as the "reverse-boomerang effect," parents' decisions to move in with their children are pushed by changes in attitude and mindset about family life but mostly by the rising housing cost and the challenges in child-care providers. Researchers stated that most of these parents are still young, healthy, and still working.
The fact that these families have not waited for the parent's retirement or urgent healthcare conditions reflects that the coming together in one household is primarily to combat the challenges brought about by the current economy and, ultimately, poverty. Two generations of working individuals can pool resources for a better way to live.
The study confirmed that Americans living in these multigenerational households are less likely to experience being poor than those living in a different kind of household.
According to The Wall Street Journal, this living arrangement was the norm in the first half of the 20th century until housing focused on nuclear families and older Americans had more money and stayed healthier longer. It made its way back after the 2008 financial crisis and just recently during the COVID-19 pandemic. The pandemic increased the demand for houses with separate living areas for older parents.
A solution to America's serious family issue?
Besides the financial benefits, the study also found that caregiving is another major reason for the reverse-boomerang trend, with 25 percent citing adult caregiving and 12 percent child care. Twenty-eight percent stated that it has always been their family's living arrangement from the start, while 15 and 12 percent cited a change in relationship status and companionship, respectively, as other reasons.
Making Money host Charles Payne guested on The Big Money Show Wednesday and commented that he loves the whole thing about multigenerational living. He shared that his late mom used to stay with them, and he loved the entire time she was at their house.
"I don't like that it's being forced by economic reasons, but I do love it in terms of the family. Economically driven, it's not a good thing... 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," Payne pointed out, as quoted by Fox Business.
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