Number of ‘boomerang’ adults climbs

More Vancouver young adults are living in their childhood bedrooms to cope with the soaring cost of living. According to data from the Pew Research Center, 12 percent of Vancouver-Portland residents between 25 and 34 years old are living with their parents. Experts say the combination of debt, lack of entry-level jobs and high housing costs is creating a steady flow of boomerang children — that is, young adults who return to live with their parents after living independently for a period. “It’s taking a little bit longer for young adults to reach those markers of adulthood — … getting married, having kids, buying their first house and things like that,” said Joanne Hsu, a University of Michigan research associate professor. “That is definitely being influenced by an escalation in the cost of higher ed, as well as the cost of housing.” Lack of entry-level housing Young adults living with their parents is a national, long-standing trend that gradually has declined in recent years. Experts said not to read too much into the slight drop. It’s probably leveling out from the surge caused by the COVID-19 pandemic. During the early stages of the pandemic, many people moved in with their families. The rate of young adults living with parents is still much higher than historical norms, said Mike Wilkerson, director of economic research at consulting firm ECOnorthwest, which has offices in Portland. “With a population growth and housing continuing to be unaffordable here, I think the chances of this going up are high,” Wilkerson said. Vancouver is seeing more young adults moving back home because of a lack of entry-level houses, Wilkerson said. Experts say debt also plays a huge part in more young adults moving in with their folks. According to the Education Data Initiative, the average student loan debt is about $39,000. In 2015, it was $29,000. The average college debt for the graduating class of 2005 was approximately $18,118, according to The College Investor. “This debt might be crowding out other forms of financial independence that these young adults could have when they’re leaving college,” Hsu said. “I wouldn’t necessarily just point to student loans per se, but the overall cost of going to college is much higher than it used to be.” According to a 2024 Bank of America report, more than half of Gen Z adults surveyed said they do not make enough to live on their own. Three percent of Vancouver-Portland young adults living with their parents are unemployed, according to the Pew Research Center. Seventy percent of 25- to 34-year-olds living at home are employed with an average income around $30,000, Wilkerson said. Those not living with family bring home about $57,000 per year. “It’s challenging to live on your own when you’re earning $30,000 a year,” Wilkerson said. According to Pew, white young adults are less likely to live with their parents than young adults of color. Multigenerational housing is a common practice among people of color, according to the Pew Research Center. That’s driven by a combination of cultural traditions, economic necessity due to population growth, financial hardship and increased caregiving needs. Among Vancouver-Portland young adults living with their parents, 63 percent are white, according to Pew. Impacts to market Wilkerson said that even if young adults are living with their parents, they still count as part of the demand for housing. He calls them “missing households” because they would be their own household if they could afford it. Because they’re out looking for rentals or maybe putting down bids for houses, they add competition to the market. Hsu said this population eventually can impact the economy for the better, however. “Forming your new household, whether you’re a renter or a homebuyer, does something that powers spending and boosts business locally,” Hsu said. “If you have lots of young adults living with their parents, that might allow them to save money and, in the future, spend more.”

Lack of entry-level housing

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