Boomerang kids in 2025: how adult children are impacting parental finances

Who are Boomerang kids and why are they returning home?

Boomerang kids are young adults who move back in with their parents after a period of living independently. In 2025, this trend continues to grow. According to the 2025 Boomerang Kids Survey, 46 per cent of parents report that their adult children, aged 18–35, have returned to live at home. Economic hardships such as student loan debt, rising housing costs, and unstable employment are contributing factors. Social acceptance of intergenerational living also plays a role.

Housing affordability remains the leading reason for this return. The survey found that 32 per cent of respondents cited the cost of housing as the main reason their adult child moved back home. Student loan burdens are also significant. As of 2024, the average federal student loan debt was $37,853 per borrower, according to the Education Data Initiative. Wage stagnation, particularly among young adults without college degrees, and volatility in the job market are further influencing this pattern.


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Life events that drive Boomerang kids back home

Major life changes often trigger a return to the parental home. Divorce or separation is the second most common reason, reported by 20 per cent of boomerang parents. Other events include job loss, medical issues, or transitions such as returning to school. These situations can disrupt financial stability, making shared housing a temporary necessity.

The return is not always rooted in financial distress. Career changes or further education can lead young adults to choose a living arrangement that reduces expenses. The cultural stigma of living at home as an adult has also diminished. According to a 2023 Pew Research study, 74 per cent of parents said the experience of having an adult child living with them had a somewhat or very positive impact.

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Financial pressures on parents supporting adult children

Parents of boomerang kids often face financial strain due to increased household expenses. These include higher costs for groceries, utilities, internet, and other day-to-day essentials. Some families opt to create cost-sharing arrangements, with adult children contributing financially or providing household labor if unemployed or underemployed.

“Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,” said Alex Gonzalez, a Thrivent Financial Advisor. “With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.”

The 2025 Boomerang Kids Survey found that 38 per cent of parents said their long-term savings, including retirement contributions, had been impacted by the return of adult children. Another 39 per cent said their short-term financial goals, such as saving for vacations or home renovations, were also affected.

Health insurance and retirement: long-term considerations

Adult children moving home may also require assistance with health insurance. Parents may add children under age 26 to their own workplace or ACA plans, often at a modest additional premium. In some cases, adult children may qualify for marketplace subsidies or Medicaid, depending on income and life circumstances.

Supporting adult children should not derail retirement savings. Gonzalez advises that older adults prioritize their financial futures even while assisting their children. “As needs arise, like adult children moving back home, I remind my clients about their long-term goals so we can make sure they’re not sacrificing their future goals for an immediate need,” he said.

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Families are encouraged to set boundaries and expectations early. Financial planning with a professional can ensure the arrangement remains sustainable and aligned with both the parents' and adult child’s goals.