In the past, leaving home was a right of passage when a young adult leaves for college and a career, leaving the parents with an “empty nest” at home. But in recent years, many millennials are choosing to return home instead of flying solo. In fact, it’s estimated that at least 14% of millennials (age 24 – 34 years old) have moved home. As a result, homeownership for those under the age of 35 is dropping, and baby boomers are facing an increasing burden of financial support for adult children who should be able to live on their own.
Why are many millennials returning home? Economic reports show that high cost of living, a weak job market, and increasing debt loads could all be factors that make it harder and harder for millennials to fly the nest.
How to Help Your Millennial
While it is good to be a supportive parent, you also need to make sure that you are careful with the situation. In some cases, parents enable the poor behavior, making it harder than ever for the millennial to take on these important adult responsibilities.
It’s your home, so you can choose the house rules and expectations. These guidelines will help your child carry a little more responsibility or even move out on their own. Here are a few tips that you might consider:
- Charge Rent: An adult child doesn’t need a free ride by living in your basement without paying rent. While it sounds a bit harsh to charge rent, this step is important to help your child learn how to manage money and create a monthly budget. If they are going to pay rent one way or another, then they might consider living independently instead of staying in your basement.
- Buy a Property: Another option is to buy an investment property where your child can live. This solution is popular among parents who want to invest in real estate and save money on college housing. Your child can live in the home with roommates, giving you an option to build equity over the years.
- Set a Deadline: Instead of allowing your child to live in the house indefinitely, it is important that you set a deadline for the free place to live. It is common for millennials to stay in a free place as long as they can. You will need to set the boundary and stick to it.
- Support and Care: Sometimes the challenge of moving out is based on the mental hurdle of facing the “adulting” tasks of an apartment lease, budgeting, moving, and other things that come with self-sufficiency. If your child is making comments about being too overwhelmed, then it might be helpful to map out a plan and work side-by-side to overcome these concerns together.
At DUFFY Realty, we’re here to help with your real estate goals. Whether you are buying an investment property for your college-age child or you are considering downsizing because your children have moved out, we can assist in finding the right solution. Call to learn about the available real estate services: (678) 318-1700