During COVID, many adult children moved back home to live with their parents after living independently for a time. The term “boomerang” represented a generational shift often caused by the unsustainable costs of maintaining a separate household.
There is another type of boomerang on the horizon. A 2024 survey by Prudential says that one in four Americans in their 50s are expected to become “Silver Squatters”—a term that refers to retired parents moving in with their children.
The phenomenon highlights the financial struggles of Gen X, the generation born between 1965 and 1980. Many in this demographic are critically underprepared for retirement. In fact, according to the report, Americans in their 50s have median retirement savings of less than $50,000. Two-thirds of 55 years olds are concerned they will outlive their savings, and nearly half of those who expect to need housing support in retirement have not yet discussed it with their family.
But the news does not have to be all bad. The potential upside of Silver Squatters is the return of multigenerational homes where two or more generations live under the same roof, sharing mortgage and maintenance expenses. In some scenarios, multiple income streams will be available to cover household expenses and resources may be pooled to afford a better home. Extended families that live together can also share daycare or elder care duties, split cooking and grocery shopping responsibilities, provide house-sitting and pet-sitting coverage, and provide emotional support across generations. This type of reciprocal relationship can strengthen the family unit while helping each generation reach its financial goals.
This trend is influencing the real estate market in several ways, including:
● Increased demand for larger homes with multiple living spaces, expanded floor plans or detached dwellings.
● Expanded targeting strategies to expose multigeneration-ready homes or properties to a broader cross-section of buyers.
● Creative financing or shared ownership models to make home purchases more feasible.
While financial challenges are real, Silver Squatters may be the silver lining that reshapes the family dynamic, establishes generational wealth and offers new options in home ownership.