Easy Cash-Out Refinance options with the NonQM Experts.
Run a Quick Quote today.
Click HERE for a Quick Quote!
The Boomerang Generation is Here to Stay
A staggering 45% of 18-29 year olds are living with their parents, according to recent statistics. This is the highest percentage since the 1940s, when it was common for young adults to live at home until marriage. While most Americans say it shouldn’t be stigmatized, the trend signals economic troubles ahead.
Almost 90% of those surveyed believe people shouldn’t be judged for moving back home. This means even more young adults are likely to become “boomerangs” – moving back in with mom and dad simply because they can’t afford to live independently.
What does this trend reveal? More disposable income for larger, multi-generational households. But conflicts may arise from this new living situation after enjoying independence. Home improvements like accessory dwelling units (ADUs) can ease the transition by creating private spaces.
In fact, California set aside $50 million to incentivize homeowners to build ADUs. Granny flats and mini-houses are not just extra space – they’re potential income from renting while adding equity. For struggling boomerang families, converting debt into ADU assets through cash-out refinancing is a smart play.
The option is especially timely as credit card delinquencies rise faster than during the Great Recession, even outside economic downturns. Financial challenges for young adults are very real, but innovative financing can turn the boomerang effect into lasting benefits.
Skeptical? Look at the facts. More young people living with parents equals an opportunity to create win-win housing solutions. States want to make it happen by reducing ADU barriers and offering incentives. With creative financing, families can build secondary spaces to embrace their new normal while gaining financial freedom. It’s time to think outside the traditional lending box.
