In a recent article printed in Forbes Magazine, they spoke about multi-generational households and a recent survey done by Pew Research Center. They surveyed people between the ages 25-34, and among 3 out of every 10 surveyed stated they had to move back in with their parents within the past few years. Approximately 80% of all surveyed stated things were working out and they were very optimistic about their financial futures.
The article went on to mention that approximately 61% surveyed stated that they knew friends or family that had moved back in with their parents due to the climactic economic free fall. It appears that moving back in with Mom and Dad has quickly become the norm. Many surveyed stated that when the adult child(ren) moved back into the house, they were able to help out with the finances of running the home, which in turn helped out the parents, for they too were feeling the pressure of the economy. It appears that the stigma that once plagued young adults fearing they would look foolish or perhaps like failures if they moved back in with Mom and Dad is not exactly the case anymore. Those that were surveyed were not embarrassed by the fact they have moved back in with their parents, in fact, the youths find their decision to do so as a wise financial decision.
They do have a point. When you think about it, it may even actually help the housing market as a whole. If more families did this, would there be fewer foreclosures hitting the market? Instead of the young adults being out on their own and renting, if they came back to Mom and Dad’s house and helped out with the expenses and therefore not not paying as much as they may have had they continued to rent, the young adults could ultimately save money for a down payment on their own home in a few years. Mom and Dad on the other hand, if they were in any risk of losing their home due to a financial hardship, could use the extra income per month they are getting from their adult children to offset the shortage of income thus keeping the house out of hot water.
What about the kids that come back to Mom and Dad and don’t have a job and can’t contribute to the household finances though? Perhaps the parents would have to make some stipulations before they embrace the idea, but then again sometimes they have no choice for their offspring might need a few months to find a job. What if they’re really trying to find a job and there just aren’t enough jobs out there though? That’s a dilemma that would have to be addressed as well. Sometimes sacrifices would need to be made in order for everyone to move forward and get through the hard times.
Moving in with parents might not be a perfect solution and may not solve the housing crisis, but intimes of uncertainty perhaps this temporary solution could save some homes from foreclosure and a great way to offset living expenses in troubled economic times. What do you think?