The term "Boomerang Generation" has gained prominence in recent headlines, describing a cohort of young adults who find themselves returning to their parents' homes as they grapple with the formidable challenges of entering the property market.
One significant factor exacerbating this trend is the looming specter of 8 percent mortgage rates, which presents a formidable new hurdle for prospective homebuyers. Furthermore, the relentless rise in rents, conspicuous inflation, and soaring property prices have collectively conspired to render the path toward homeownership increasingly daunting, far more than in years past.1
Faced with these daunting circumstances, prospective homebuyers are acutely aware of the need for assistance. A recent survey has unveiled a stark reality: over half of those planning to embark on the journey of homebuying in the upcoming year have contemplated seeking financial aid from their parents, and in some instances, resorting to moving back home to cut costs. While the idea of welcoming their adult children back home is driven by a genuine desire to support their homeownership dreams, it can also give rise to a host of financial challenges if not approached thoughtfully.2
In light of these evolving dynamics, it is essential for families to engage in open and constructive dialogues, ensuring that the return of young adults to the family home is a well-considered step towards achieving their shared homeownership goals.
1. 1 Source: Realtor.com, October 10, 2023
2 Source: Realtor.com, October 10, 2023