The birth of the "boomerang generation" -

From Boomers to 'Boomerang'

Looks like the "boomerang generation" is still booming!

According to new census data, the number of adult children moving back in with mom and dad has soared since the recession.

Nineteen percent of men ages 25 to 34 now live with their parents, which is a five percent jump since 2005.

Ten percent of women in that age group live at home too, which is eight percent higher than in 2005. And the numbers are even higher for college-aged adults!

A full 59 percent of men and 50 percent of women between the ages of 18 and 24 now live with their parents, up dramatically since 2005.

Analysts say all of this means that there are about 150,000 fewer households being formed per year now, which reduces the demand for housing and drives down home prices.

Even if all of those young people were renting, rents would rise and higher rents typically push some households into buying instead.

And this has an effect on the parents, too, of course. 

Couples who had planned to downsize aren't able to if the kids move back home, and that can affect the parents' retirement plans.

There's nothing wrong with helping your kids. But make sure you have clear ground rules about what you expect from them, and how long the arrangement might last! 

Copyright 2012 America Now. All rights reserved.

Powered by WorldNow