It’s called the boomerang generation.
The cause? More people are remaining single longer, which means no combined incomes to form their own households. But also, the rising rental costs have surpassed wage increases in flourishing cities across the country. We happen to live in one such city.
The average cost of a studio apartment in Denver is $1,100. The lowest average outside of city center is $900. These amounts do not include utilities. A single person would have to make $38,000 to $42,000 per year to be able to keep rent at or below 30% of their monthly income. Most places aren’t going to pay that much without requiring a college degree or technical certification. To get that college degree, many have to take out loans. Add student loan repayment to the mix of monthly expenses, and even 30% gets uncomfortable.
So if any of my kids who leave the nest find themselves in need of a place to live, you’re damn right they can come home! It’ll come at a cost to help cover obvious increases in household expenses, but they will have a safe place to live while they do whatever it takes to get to where they need to be financially.
Got opinions? Leave a comment. 🙂