Due to factors like rising housing costs and lack of retirement savings, Boomers are beginning to move in with their Millennial kids, a phenomenon known as the “reverse boomerang effect.” These intergenerational living arrangements can be beneficial for both parties, allowing them to save money by splitting housing costs. Plus, Millennials with young children and demanding jobs are often happy to have live-in childcare help from Boomer grandparents. Here are 11 reasons that help explain why Baby Boomers are moving in with their Millennial kids at this stage in their lives.
1. Lack of Retirement Savings
Although many Boomers are working past traditional retirement age to pad their nest eggs, some can’t due to health problems. This abrupt exit from the workforce may leave them without enough savings to live on comfortably, even when combined with Social Security. Boomers who have a good relationship with their Millennial kids may move in with them to reduce their living expenses and make their slim retirement funds go further.
2. Housing Is Unaffordable
In high cost of living areas with limited affordable housing options, multi-generational living can be a practical solution for Boomers and Millennials. Splitting their living expenses may enable both parties to save money and get some financial breathing room.
3. Healthcare Needs
As Boomers age, they may require more assistance with daily tasks or healthcare support. Moving in with their Millennial kids can ensure they receive the care they need without draining their nest eggs to pay for professional caregiving services.
4. Changing Family Dynamics
Although Americans have long favored the nuclear family model, family dynamics have begun to change. Multi-generational living has been on the rise since the pandemic and has become more normalized. Roughly 18% of the US population now lives in a household with multiple generations under one roof. So it’s unsurprising that we’re seeing a greater trend of Baby Boomers moving in with their Millennial kids.
5. Childcare Support
Millennials with young children may not be able to afford high childcare costs while juggling student loans and mortgage payments. Inviting their Boomer parents to move in and provide childcare support can help them avoid wasting thousands per month on daycare. This arrangement can be mutually beneficial for Boomers, allowing them to save on housing costs and develop closer relationships with their grandkids.
6. Crisis or Life Changes
Life events such as divorce, loss of a spouse, or financial setbacks may prompt Boomers to seek support from their adult children by moving in with them, either temporarily or permanently.
7. Healthcare and Transportation Access
Many Millennials live in urban areas with greater access to amenities seniors may need as they age, such as good hospitals and public transportation options. Boomers may move in with their adult children to take advantage of these resources if they currently live in an area without them.
8. Cultural Expectations
In some cultures, it’s expected that children will care for their aging parents. Boomers may move in with their Millennial children due to cultural expectations or norms regarding family caregiving.
9. Downsizing
Boomers may find that their current living arrangements are too large or difficult to maintain as they age. Moving in with their children allows them to downsize their living space, reducing their household expenses and maintenance obligations.
To maintain some privacy, Boomers may opt to build an accessory dwelling unit or create a separate apartment in their child’s home. Millennials may appreciate this arrangement because ADUs and mother-in-law suites can add value to their property, helping them build equity.
10. Loneliness
Many Boomers, especially those who are retired or have experienced significant life changes, may struggle with feelings of loneliness and social isolation. Living alone can exacerbate these feelings, particularly if they have limited social networks or community connections. Moving in with their Millennial children provides an opportunity for increased social interaction and companionship on a daily basis.
11. Caring for Their Adult Children
In some cases, Boomers may move in with their Millennial children to provide support and guidance through major life transitions. Millennials dealing with adverse events like the loss of a spouse or a period of illness may benefit from their parents’ help and presence.
Thriving in a Multi-Generational Living Situation
Many Boomers and Millennials didn’t expect that they’d need to live together at this stage in their lives. However, both parties can make the best of the situation by seeing it as an opportunity to connect and strengthen family ties. Respecting each other’s boundaries and maintaining open lines of communication can help foster a harmonious, mutually supportive living environment.
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.