More parents moving in with their kids amid inflation
(NewsNation) — In the wake of inflation and high housing costs, more and more families are turning to multigenerational living at a younger age — increasing among all age groups over the past five decades, according to a report by the Pew Research Center.
Researchers said 1 in 4 U.S. adults ages 25 to 34 years old resided in multigenerational family households in 2021, up from 9% in 1971.
However, while most of these young adults are the ones moving back in with their parents, there has been an increase in a trend where more parents have begun moving in with their young adult children, the Wall Street Journal reported.
Richard Fry, a senior researcher at Pew, told the Wall Street Journal that a significant number of older adults are moving in with millennials.
As of 2021, the number of people ages 25 to 34 heading the household grew by 6%, the Pew Research Center report said.
The new trend is being called the "reverse-boomerang effect."
The move is meant to save money during a time when inflation and high housing costs have become debilitating to many Americans. Plus, having an older adult in the home opens up the possibility for affordable child care there.
NewsNation spoke with a Florida woman who asked her dad to move in with her to help with the kids and her online business. So far, the living arrangement has proved beneficial for both parties.
Dan Kane left behind his life in Arizona and drove 36 hours six months ago to move in with his daughter, Darin Nicole, and her family.
Kane said it was one of the best decisions of his life.
"Seeing grandkids every day, seeing my daughter ... it's more than I could ever ask," he said.
And for Nicole, having her dad there has lightened her workload.
"We have extra helping hands," she said. "It takes a lot of stress away from me as a mother."
Since the pandemic, Americans have been reeling from inflation, paying 12% more for groceries this year compared to last year. Plus, high housing costs are also to blame for the financial strain.
According to Redfin, the national average price of a single-family home now stands at an estimated $383,000.
And the average yearly cost to raise a child is about $17,000, according to the Brookings Institution.
Financial planner Bill Dendy said Americans should have a plan in place before anyone moves in.
"Openness and communication, laying out the boundaries and what we expect, the plans of what we are going to do in the future. Treat this like a business partnership that may dissolve. What does it look like when it dissolves?" Dendy said.
Nicole and her dad said they have worked out an agreement that everyone is happy about.
"My dad does all the grocery shopping," she said. "We have a joint credit card ... we put utilities on. The power, we split it down the middle."
Nicole said it took some convincing to talk her dad into moving in, but so far, the only issue they've run into is finding a quiet place to work since she, he and both of their spouses work from home.