Things are different with the boomerang generation. The way it used to happen is that the kids grow up,graduate school and get a job. Next, they move out, get married and then they buy their first home.
That’s the way it used to happen, but no longer with the boomerang generation. These young adult are moving out, but then they come back. Just like a boomerang.
Multigeneration Homes
Boomerang kids are behind 35% of all multi generational home purchases in 2018. And 52% are Gen X buyers, who are most likely to buy a multigen home according to National Association of Realtors..
But who is the boomerang generation, and why are they still living with their parents? What is their impact on the housing market?
What is the boomerang generation?
Many of us are unfamiliar with the term. Boomerang kids are young adults who’ve either moved back home with their parents or they never moved out in the first place. And they’re not necessarily back by choice. The high costs of rent and the lack of affordable housing inventory is forcing them back.
However, the main reason, 61%, they’ve returned home is an attempt to save money.Saving for a down payment is the main reason they’ve delayed buying a home.
What is the Impact?
Boomerang kids not only contribute to the increase in multi generational home purchases, they also contribute to the recent decrease in the Baby Boomers downsizing their homes.
This impact will be continue to affect the market for years to come. By living at home, the Boomerang Generation are able to build their financial base. Consequently, they can skip the rental trap and go directly into home ownership.
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Bottom Line
- By helping boomerang kids save their down payment, they’ll be moving out before you know it. Then, after a while, you can move in with them. When the boomerang kids (or you) are ready to buy a home, contact us. We’ll help get them out of your home.
- Would you like to search for homes in other Monmouth County towns?
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