If you live in a major city, the Greater Toronto Area and the Greater Vancouver Area especially, then your social media feed has been most likely inundated with news reports about both skyrocketing rent and the roller-coaster real estate market. To put it bluntly, housing prices—whether you’re renting or buying—are insane. What’s worse, while the government is finally addressing the overheated buying and selling market, we haven’t heard much about affordable rent action plans.
With salaries not keeping up with inflation, it’s no wonder millennials (and even Gen-Xers, to be honest) are feeling squeezed out of affordable housing in the cities where they must live to earn money and build their careers. Unsurprisingly, I’m starting to see my friends and I divide into three camps: home-owners, confirmed life-long renters, and the boomerangers—those who’ve decided to move back in with parents who live within commuting distance of their job and social life.
It’s becoming less and less taboo for the under-35 set, and even those under 40 to move back in with their parents or other relatives who live in a major city hub. And you know what? Good for them, I say.
Here are five reasons why I think it’s a great idea to move back home:
1. Allows you to save
Even if you’re paying a small amount of rent, or only contributing to groceries or utilities, it’s safe to say that you’re putting away a lot more money each month than if you were renting downtown.
2. Deepens your relationships with your parents/family
Knocking on wood, spending time in close quarters with your parents as an adult will enrich your relationship with them, as long as both sides are respectful. Moving back in with your parents as a full-fledged adult will help you understand them even more with a new, mature perspective.
3. Helps out your parents
Even boomer parents are stretched these days and depending on their situation, your small contribution can make a big difference to them. And of course, your company is priceless!
4. This is their gift to you
We all know someone who is blessed enough to receive cash gifts from their parents to contribute towards the down payment on their first home. Many of us have parents who simply can’t afford to, but they live in a central location and have re-opened their homes to their beloved adult children. In my books, those of us who have this option are just as lucky as those who receive the cold hard cash.
5. Forces you to think of the big picture
Because there’s nothing more motivating to make us work, save, and invest for the future than being an adult and moving back in with mom and dad….trust me, I know from personal experience!
Living with your parents after college or university and well into your 30s may not be ideal. But in this economy, in this real estate market, and with these stagnant incomes, if you have the opportunity to catch up or get ahead in this extremely competitive environment then I say: go for it.
After years of building her own investment portfolio (on a young professional’s budget), Melissa became passionate about financial literacy and empowering women financially. Currently, Melissa works as a financial advisor and is pursuing her Certified Financial Planner (CFP) designation. You can find her at @meltalksmoney on Instagram.