As housing markets across the country face low inventory and rapidly rising prices, it’s increasingly common for working-age adults to move their parents in with them. Its purpose is to limit the total amount of fees incurred by one of the parties involved.
The impact on working-age adults’ ability to buy a home or pay a mortgage varies. That’s according to a new survey real estate agent network This shows that people have different opinions on whether it is beneficial or harmful.
Realtor.com calls these people the “sandwich generation,” defined as a generation that supports both parents and children under 18 years old. One generation accounts for 16%.
Of this group, one-third said caring for children and parents helped them afford a home. These people often receive help from the senior family, either from equity previously generated in the senior family’s home or from higher retirement income.
But another 30% said it was preventing them from buying a home.
“Today’s real estate market presents challenges for most buyers, especially first-time homebuyers, many of whom are Millennials or Generation Z,” the Realtor.com report reads. “For those in the sandwich generation, consider Housing may feel untenable due to the family’s financial needs, or it may be more accessible due to family support.”
About one in six Americans qualifies as a sandwich generation. Among Millennials, 57% say having parental support helps them afford a home, while 45% say it helps them financially prepare for retirement.
But 47% said caring for an elderly person and children would prevent them from buying a home.
The gender composition of the Sandwich Generation is skewed towards men, with 56% of them being men.
“It appears that the impact of caring responsibilities on the Sandwich Generation depends largely on the circumstances and arrangements chosen by their families,” the report concluded.
