Why Gen Z Is Moving Back To Live With Parents

Rising cost of urban living along with stagnant salaries are pushing a generation of young professionals to move back in with their parents. That situation may lead to friction but mature handling make the situation a win-win for both

Updated on: 1 December 2025 12:13 pm

In India, it’s not unusual to find individuals in their 20s or 30s living with their parents, with joint families considered the bedrock of Indian culture. But a whole generation who migrated from smaller cities to bigger ones in search of a good education and a salaried job in the last few decades rewrote that concept to a large extent. Financial independence became a cherished concept defined by moving out of one’s childhood home. Add to that, widening generation gap in terms of life choices led many young individuals to find their own places once they started earning, even if they lived in the same city as their parents.

That urge to fly far from the nest seems to have had a short life in India, given that the economics of financial freedom is not so simple anymore, as Indians face a new reality marked by an uncertain jobs landscape and rising real estate and rent cost.

This new generation returning home to live with their parents, after tasting independent living, is being called the boomerang generation. A recent social media post by Bombay Shaving Company founder Shantanu Deshpande highlighted the rising prevalence of the trend. In his post, Deshpande talked about how more and more men and women are expected to move back in with parents amid rising expenses and other pressures, and called the people moving back home the boomerang generation.

1 December 2025

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This trend is also being quantified by recent real estate trends where people are preferring larger homes, pointing towards a growing demand for larger spaces to house bigger families.

Data by real estate firm JLL reveals that in the first half of 2025, apartments valued at Rs 1 crore and above made up 6 per cent of total sales across India’s top cities. Notably, this segment mainly comprises 3-bedroom, 4-bedroom and bigger residential spaces. Earlier in 2025, KPMG mentioned in a report that the concept of multigenerational living is becoming popular in India, as families are choosing homes designed to accommodate different age groups under the same roof.

The boomerang phenomenon refers to those who moved out and then returned, suggesting a reversal of the path to independence.

What’s spurring the change and what does it mean for families, which are now looking at combined living and incomes? Let’s explore.

What’s Behind The Boomerang Trend?

The return home after tasting financial independence seems to be spurred by a multitude of factors.

The roots of the phenomenon lie in the Covid-19 era, when a government-imposed lockdown prompted many to move back home as companies allowed work from home. The pandemic also reinforced the value of the family as a cushion against all odds for both economic and emotional needs, accelerating the return of those living independently. However, even five years later, young professionals continue to return home.

One of the most cited factors for this return is a steep rise in rents in urban India. According to a report by Indian proptech (property technology) company NoBroker, rental inflation in the first half of 2025 was 7-9 per cent across the major metro areas (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune), while headline inflation was around 3 per cent during the same period.

The roots lie in the Covid-19 era when the lockdown prompted many to move back home. That also reinforced the essence of family as a cushion in tough times

House rent tends to absorb an unsustainable portion of a young professional’s income, making the choice to move back home an immediate cost-saving measure.

Kushagra Mathur, 28, deputy manager at a data analytics and consulting firm, recently moved from Gurgaon to his hometown Jaipur. One of the major factors that prompted the move was high rent. He says: “Finance plays a major role here because when you live away from home, especially in metro cities like Mumbai and Gurgaon, the rents are quite high. For instance, a 2-bedroom flat in Delhi will cost you somewhere around Rs 30,000-40,000. So, money was a major factor for me for moving back to my hometown.”

The other major reason is the job landscape. Many young adults are on career trajectories which are fraught with uncertainties on account of the macroeconomic situation which has affected global trade in the past one year, such as the imposition of trade tariffs and conservative immigration policies by US President Donald Trump.

Kushagra Mathur, 28, Data Analytics Professional, Jaipur He moved back from Gurgaon to Jaipur because of the high rent. He had to adapt to his parent’s time-bound schedule unlike his own laidback routine, which involved sleeping late at night and waking up late in the morning on holidays

Moreover, in India, income stagnation is a perpetual reality that makes it difficult to sustain an independent lifestyle for many 20-30 year-olds. Earlier in 2025, data from the Periodic Labour Force Survey (PLFS) depicted that the real wages for salaried workers have shown stagnation since 2019. Real wages for salaried workers declined by 1.70 per cent in the June 2024 quarter compared to the pre-pandemic June 2019 quarter, hinting at a significant fall in purchasing power.

While financial reasons are key drivers, multiple social and emotional pressures, such as supporting ageing parents, also influence this decision.

Sarah Shailendra Salve, 26, a communications and content manager, returned to Mumbai last year after having lived and worked in Ireland for five years. The sense of isolation in Ireland against a vibrant social life in India and concern for her ageing parents made her return.

She says: “The lack of community is one of the biggest reasons for me because I am a very social person. My parents are ageing and that was always on my mind when I lived abroad. I always thought I was spending my time in a different country away from them. I tell myself that I have the rest of my life to go around the world. I don’t know how much time I have with them.”

Re-settling In The Nest

Irrespective of whether the decision to move back is spurred by finances or emotions, the return is bound to create initial adjustment hiccups for both the children and the parents—financially and emotionally.

The generational gap between parents and children has never been wider. Many among the older generation have an approach towards life that the next generation may find conservative. Deliberate negotiation of both fiscal and emotional boundaries by both parties is what can help.

Priya Sunder, a Securities and Exchange Board of India-registered investment advisor (Sebi RIA) and co-founder at PeakAlpha Investments, says that the move back home is expected to lead to financial stress regarding spending habits and the encroachment of personal space for the children who have experienced the freedom of living away from home.

Says Sunder: “If they have moved into their parents’ house, then I think certain boundaries must be set because both are not used to the system. The parents may have raised the kid for the first 18-20 years of their lives, but suddenly if they move back into their house, it is an encroachment on their space and independence as much as it is for the child who has lived independently all these years. All these things are going to breed resentment on both sides.”

Kushagra shares he had to adapt to his parent’s time-bound schedule as opposed to his laid-back routine, which involves sleeping late at night and waking up late on holidays.

“The major mismatch is about the routine. They are following a different routine from the last 30-40 years and from the last six years, I am following a different routine. So, when you are back home, there are some unsaid rules, and some routines which you need to follow, like meal times,” says Kushagra.

He adds though that he has also been able to bring value to the table by sharing his experiences of a bigger city and helping them on the technology front. “We got more exposure than them because we were working in metros. We do have discussions and disagreements, but I am teaching them a lot of things, such as how to order things from grocery apps,” adds Kushagra.

Sarah had to negotiate boundaries with her parents. “When I left, I was much younger. To your parents, you are still a kid when you come back. Initially, if I had to travel or meet friends late at night, they became worried and asked me how would I come back and so on. Issues like these often caused friction.”

She navigated that by communicating with her parents about her ability to handle herself responsibly. “My parents are progressive. After a lot of communication they now look at me as an adult, and that has made a lot of difference. Now they understand my choices and know that I have the ability to take care of myself.”

Sunder also emphasised the importance of setting up financial boundaries between parents and children who move back home. Monetary conversations within families can lead to friction, but parents must ensure they don’t derail their retirement plan, and children need to be aware of that.

“Parents may say that you don’t have to do anything or pay them, but the first thing to establish is that you contribute financially. It is not fair to a parent who is approaching retirement or who has already retired to pick up that extra cost for their kid. In fact, it should be the other way around,” says Sunder.

Children can always find a way to contribute. Says Harshit Patel, CFP, and independent qualified financial advisor at 1 Finance: “One of the things that children could do is take care of the household expenses, if they are not contributing towards rent. They can indirectly pay money in the form of groceries, pay off household expenses or prepay premiums for the parent’s health and life insurance policies.”

Sarah S. Salve 26, Marketing Professional, Mumbai She returned home after living in Ireland for five years because she missed the social connect. She had to negotiate boundaries with her parents but overcame the hurdle by communicating with them about her ability to handle responsibilities

Making The Most Of It

Done right, living together can benefit both children and parents.

For the younger generation, disposable income is likely to increase. That can lead to the desire to splurge amid a multitude of e-commerce apps, but they can also put it to good use.

The boomerang generation phenomenon has the potential to catalyse significant financial recovery for young professionals, help them build wealth, while supporting their parents.

For instance, the saving in rent can help them aggressively reduce debt. Says Sunder: “The younger generation has too many loans. So, they should pay attention to that before thinking about investing. Whether they are loans from friends or credit card loans or any other loan, they can use this as an opportunity to reduce their liability.”

Those without debt can focus on savings. Says Sunder: “Your disposable income may increase. In such a case, this is a great opportunity to make every rupee work for you. If you were saving Rs 30,000 a month, increase that to Rs 40,000. In just one year, that extra Rs 1.20 lakh a year is going to give you a bit of a fillip.”

For parents, it may translate into much-needed support, both financially and emotionally. Patel advises the younger ones against splurging and taking the first few years of living with the parents to honestly gauge the cost of living with parents.

He says: “These 20-year-olds should avoid expensive lifestyle choices, at least for the first few years, to try and gauge the expenses back home, with respect to the income they are earning and see what is the balance amount available for spending on their lifestyle.”

The emotional quotient, of course, is far higher for parents who could anyway afford to live independently. The presence of the child acts as an invaluable support system for them and alleviates the empty nest syndrome.

Says Sunder: “Having you back can foster a sense of security for the parent. You can also make the most of your presence by making them do things they wouldn’t do by themselves, such as buying an appliance or taking a vacation.”

The Indian joint family system, once a default structure, is now being reinvented as a pragmatic financial partnership. Families who manage to navigate this with open communication and clear financial boundaries will benefit from the boomerang phenomenon.