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Rising foreclosures forcing many to move back home

September 14, 2010 - Moving back with one's family is not always an attractive option, but for many distressed homeowners who have undergone foreclosure, it is their only option.

The Chicago Tribune reported that moving back with the parents is not just an option for recent college graduates. In a trend dubbed the "boomerang" effect by sociologists, older adults who have had their homes repossessed or lost their jobs are moving in with extended family while they work to get back on their feet.

The report cited data from the U.S. Census Bureau that showed that 16 percent of the population is living in a home with two adult generations. In 1980, that figure was at just 12 percent.

One Chicago resident, Deborah McCoy, told the paper that joining households with her younger brother was the only way for her to stay on top of her finances. "I don't know how people are going to recover their savings if they don't double up," she said.

This type of relocation is more typically seen among recent college graduates, who might stay with their parents until they can save up to move out on their own. In today's economic environment, when U.S. student loan debt is greater than credit debt, as USA Today reports, staying with a parent might be the best way for some graduates to save.

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