Boomeranged! The Effect of Coresiding Adult Children on Housing Transitions Among Older Homeowners

Abstract

This paper presents new evidence of a causal link between coresiding adult children and housing transitions among older homeowners in the U.S. Estimates from OLS and IV models indicate the effects are relatively large in magnitude. For example, a one-child increase in the number of adult child coresidents over the two year period of observation is estimated to reduce the probability of becoming a renter by roughly 1 to 2 percentage points, or 40 to 60 percent of the mean tenure transition rate among homeowners in the sample. Effects on probability of moving to a smaller home (i.e. downsizing) are similar in magnitude.