Young adults are moving back in with their parents in near-record numbers, and it’s affecting every aspect of life, from finances to relationships. The fifth annual Boomerang Kids Survey from Thrivent, a financial services firm, revealed that 44% of US parents have adult children who’ve moved back home at some point. That number is down by a mere 2% since 2025, indicating the trend shows little evidence of tapering off.
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Millennials: The first boomerang kids
Gen Z didn’t invent the “boomerang kids” concept or label. Millennials were deemed the “boomerang generation” shortly after the Great Recession, when 39% of young adults (ages 18 to 34) reported living with their parents in 2012, according to historical Pew Research data. At that time, 29% of parents reported having a child move back home.
Housing affordability, student loans, and economic pressures are making it even harder for Gen Z, driving the percentage of boomerang parents to 44% in 2026. Young adults today blame unaffordable housing (45%) and job loss or reduced income (36%) as the key motivations for moving back home.
More than half (55%) of young adults who moved back home said it was financially necessary, while another 27% cited “financial benefits” to the move, according to the Thrivent survey.
By contrast, only 9% of millennials in the post-Great Recession era said they relied on financial assistance from their parents while living with them, although that number jumped to 19% among 18- to 34-year-olds at the time. Nearly half (48%) of those ages 25 to 34 paid rent, according to the Pew survey.
“What surprised me most is how this trend has evolved into something much more intentional, even if families don’t always see it that way at first,” observed Gene Elder, Thrivent financial consultant. “It reflects broader economic pressures rather than purely individual choice.”
“What stands out most is the disconnect between what parents are experiencing and what their adult children understand. From what I see with my clients, it’s usually not a case of parents intentionally remaining silent, but rather a natural tendency to prioritize support and avoid having potentially uncomfortable financial conversations, or adding to their children’s burden.”
Financial struggles of younger generations impact Gen X and Boomer parents
While some elder millennials may have adult children, Gen X (ages 46 to 61) and Boomers (ages 62 to 80) are impacted the most by boomerang kids.
Four-in-10 parents (43%) said they’re willing to cut personal spending to support their adult children, while nearly one-in-five are willing to skimp on their savings and retirement goals to offer support. One-quarter (26%) said their child moving in has stilted their own debt repayment plans.
Overall, 47% said that their finances were impacted in some way by their adult child moving back home.
Communication gaps can cause conflict
In spite of confessing in the survey that their adult children are causing a financial burden, parents are keeping mum on the topic to the people who matter. More than three-quarters (76%) of boomerang kids said their parents haven’t shared how the living situation is impacting long-term financial planning.
Gen X and Boomers grew up in an era where few people talked about money. We also may feel an obligation to help out. As tough as Gen X had it, drinking water from a garden hose while both parents worked and, later, entering the workforce during a recession, we know it could be worse. Millennials were the first generation to have less earning power than their parents, according to the World Economic Forum. And it’s even worse for Gen Z.
But all this doesn’t mean Gen X and Boomers should suffer silently while supporting adult children.
“What stands out most is the disconnect between what parents are experiencing and what their adult children understand,” Elder said. “From what I see with my clients, it’s usually not a case of parents intentionally remaining silent, but rather a natural tendency to prioritize support and avoid having potentially uncomfortable financial conversations, or adding to their children’s burden.”
It’s important to have conversations before resentment builds and your retirement dreams vanish. “The impact often builds gradually, but it can add up in meaningful ways,” Elder said.
After all, if you’re footing the bill for extra groceries, electricity, and water, along with providing cash at times, you’re eating into your current lifestyle and future goals.
“Protecting retirement savings, in particular, is one of the most important boundaries to maintain,” Elder said.
Questions to discuss
As uncomfortable as it might be, Elder advised starting the conversation with purpose – not just a list of house rules to follow or a passive-aggressive note taped to an electric bill.
“As the child’s stay at home grows longer, [a] lack of transparency can lead to misaligned expectations,” he said. “Having open conversations is important because it creates shared understanding around what this support means — both emotionally and financially.”
First, set guidelines around what might be fair contributions, including a portion of groceries, utilities, or a fixed monthly rent that will help cover living expenses. The amount, if possible, should be based on the adult child’s income and long-term savings goals.
“In many cases, the challenge is not the amount being contributed; it is the lack of clarity around expectations,” Elder said.
Some of the questions Elder recommended asking dive deeper, with an eye on financial independence:
- How long is the arrangement intended to last?
- What milestones signal progress toward independence?
- What are the expectations for household contributions – including chores and money?
“The biggest source of conflict usually comes down to expectations not being clearly defined — both in terms of the length of stay and financial implications,” he said. “Parents often view the arrangement as temporary and goal-oriented, while adult children may see it as more flexible or open-ended.”
Setting goals and defining a roadmap
Looking for a job in this market can be frustrating and disheartening. Adults who move back home may feel a sense of security in having a safety net but could lose their sense of purpose or autonomy.
Parents can step in to create accountability and recapture momentum. “If a young adult is at home while they search for a job in their career field, you could set a goal around a number of job applications submitted or a deadline for picking up part-time work in the meantime,” Elder said.
Savings goals might also be part of the equation, especially if the end game is for the adult child to be able to afford a home of their own.
“When both sides are aligned around shared goals and progress, that path to independence becomes much more achievable,” Elder said.
Hope for the future
Optimistically, 78% of adults living with their parents said they hope to achieve financial independence within five to 10 years. This might seem like a long runway to “launch,” but, given housing prices, inflation and economic conditions, it could be a realistic assessment.
Parents can offer support and guidance without absorbing all the costs.
“The families that navigate this most successfully are the ones that communicate early, revisit expectations regularly, and treat it as a shared plan rather than an informal arrangement,” Elder concluded.
This article produced for TheStreet by Nifty 50+