Look out – They’re coming back! It’s the “Boomerang Kids” and this trend is increasing as the job market wavers, rent and groceries keep rising and the certainty of “home” and its comforts outweighs the cruel reality of life. This week, the Financial Flash takes a look at the trend and what it’s doing to the parents as they try to plan for retirement. Then we take a look at how to manage the added costs and help you and your kids get back on track. Check it out and make sure to subscribe to emails and get the latest Financial Flash video right to your inbox.
Have a great weekend.
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Hi everyone, I’m Glenn Gray from Stiles Financial Services.
And for this week’s Financial Flash, I want to talk to you parent-to-parent—
about something that’s becoming more common:
Boomerang Kids.
That is—young adults in their 20s and early 30s—
who move back home after college, or after living on their own.
Now, if this has happened in your household recently—
you’re not alone.
According to a Pew Research Center study published in April 2025,
nearly 1 in 5 adults aged 25 to 34 are living with their parents.
And for younger adults—those in Gen Z aged 18 to 24—over half are doing the same.
So… why is this happening?
Well, the economy has changed. A lot.
The average rent for a one-bedroom apartment in the U.S.
has more than doubled since 1995—
rising from around $550 back then to over $1,500 today.
According to March 2025 data from iPropertyManagement.com.
And in areas like Minneapolis’ North Loop,
rents have surged beyond $2,000 a month for a one-bedroom unit.
Now yes, salaries have increased too—
but not nearly at the same pace as inflation and the overall cost of living.
Add in a job market that’s flooded with gig work, competitive entry-level positions,
and the growing influence of AI…
And top that off with significant student debt.
It’s no wonder so many young adults are making the hard decision to move back home.
And here’s something important:
For many of them, moving back isn’t something they take lightly.
It’s humbling. It’s emotional. And it’s rarely Plan A.
That said—when they do return home, the shift often feels like a return to something familiar.
As parents, we’re usually glad to have them around again.
Especially after that tough empty-nest transition.
Suddenly, the house feels full.
There’s conversation again. Energy.
And someone’s finally eating the leftovers!
But let’s be honest… that glow wears off fast.
Because one more adult in the house also means:
more laundry… longer showers… bigger grocery bills…
and that snack you bought for yourself? Gone in two hours.
Financially, this return can carry a real cost.
Many of us were planning to downsize or even retire.
Instead, we’re holding onto the “family-sized” home—
paying family-sized utility bills—
and absorbing more of the day-to-day expenses.
According to an April 2025 survey by Thrivent,
parents spend an average of $1,428 a month to support an adult child living at home.
That’s money that’s not going into retirement savings—
or toward a long-overdue vacation.
Even more concerning:
A May 2025 article from InvestmentNews revealed that 38% of parents
say having their adult children move back home
has directly impacted their ability to retire on time.
So let’s talk about how to make this work—
with less friction… and more clarity.
Because this isn’t like when they were 12.
They’re adults now—
and this has to feel like adult life.
Here are four guidelines you can use
to set expectations and create a healthier dynamic at home:
Number one: Pay Rent.
Even if it’s a small amount.
It helps them understand the real cost of living.
And it reminds everyone—this isn’t a long weekend.
It also offsets your expenses—without guilt.
Number two: Contribute to Groceries, Gas & Utilities.
They’re not guests. They live here.
That means helping with the power they use, the food they eat, and the gas they burn.
Whether it’s a monthly cash contribution, or just being in charge of groceries twice a month—
it matters.
Number three: Help with Housework.
And not just their own laundry.
Ask them to pitch in like a roommate would.
Vacuum, mow, take out the trash, clean the bathroom.
This isn’t about chores—it’s about building real-world life skills.
Number four: Set a Move-Out Timeline.
This is critical.
Six months. A year.
A goal based on savings or employment milestones.
Not because you want to push them out—
but because everyone does better with a plan.
If there’s no target date,
it’s far too easy for “just a few months” to become “a few years.”
Look—Boomerang Kids are a reflection of a housing market that’s tough,
a job market that’s shifting,
and life circumstances that are often beyond their control.
But with clear boundaries, shared responsibilities, and open communication,
this chapter can actually be a turning point.
A chance for them to build confidence—
for you to maintain stability—
and for both of you to move forward with strength and understanding.
Thanks so much for tuning in.
Don’t forget to subscribe to the Financial Flash —
Delivered each week right to your inbox or on our YouTube channel.
And, of course—
Get out there and have a great weekend!
✅ Cited References (for your notes or slide deck):
- Pew Research Center. “The shares of young adults living with parents vary widely across the U.S.” April 2025. pewresearch.org
- iPropertyManagement. “Average Rent by Year [1940–2025].” March 2025. ipropertymanagement.com
- Thrivent. “Parents’ Retirement Threatened as High Costs Drive Adult Children Home.” April 30, 2025. newsroom.thrivent.com
- InvestmentNews. “Boomerang Kids Trend is Continuing in 2025, Harming Parents’ Retirement Plans.” May 2025. investmentnews.com
