Moving Back In With Your Parents to Save for a House—Is It a Good Idea?

The high cost of homes and the difficulty of saving for a down payment can be pretty daunting for many aspiring homeowners—especially Millenial and Gen Z Americans. But is moving back in with your parents to save for a house a good idea? 

It’s an option that offers several benefits including the ability to pay off debt, build savings, and have a support system. 

In this article, we’ll discuss the pros and cons of moving back in with parents, how to make the most of this opportunity to save, and tips for maintaining healthy relationships. 

Why move back in with your parents?

You may not even want to consider this option but it does make economic sense if it’s feasible. A small monthly rent amount, or maybe even no monthly payment for rent, can make a significant difference in your monthly budget. 

Rent eats up a lot of your income

Rent can take up a large portion of your budget. If you’re currently paying $1,500 a month in rent and utilities, moving back in with your parents could save you $18,000 a year.

Given the substantial savings involved, it comes as no surprise that 52% of young adults aged 18-29 opt to reside with their parents with a specific aim to save funds for a home or to alleviate their debt burden. 

Cohabiting is often an optimal approach to significantly reduce expenses and accelerate the saving journey.

Budget-busting rental prices

A common guideline advises Americans to allocate 30% of their gross monthly income toward housing expenses. 

For instance, if your annual pre-tax income is $48,000, you should aim to spend no more than $1,200 per month on housing. This recommendation ensures a balanced financial approach while still allowing for comfortable accommodation.

If you’re currently paying more than that, moving back in with your parents could help you stay within this budget, and you could free up some of your budget for other goals and expenses.

Pros and cons of moving back in with your parents to save for a home

Moving back in with parents can be a great way to save money, pay off debt, and build savings. However, there are also some downsides to consider. The following are some pros and cons of moving back in with parents.

Pros:

• Save money: Living with your parents can be much cheaper than renting or owning a home, allowing you to save money for a down payment or other financial goals.
• Pay off debt: With lower living expenses, you may be able to pay off debt more quickly and improve your credit in the process. 
• Build savings: Living with parents can also allow you to build up your savings more quickly.
• Have a support system: A familial connection could prove beneficial for emotional support and camaraderie. 

Cons:

• Loss of independence: Moving back in with your parents can mean giving up some of your independence and privacy.
• Potential strain on relationships: Living with parents can put a strain on your relationship with them, especially if there are conflicts over household rules or expectations.
• Readjusting to living with parents: If you have been living on your own for a while, it may be difficult to readjust to someone else’s household rules again.

How to make the most of living with parents

By following these tips, you can make the most of your time living with your parents, maintain a positive relationship, and work towards your long-term financial goals.

Set clear expectations and boundaries 

Discuss your responsibilities, privacy needs, and any house rules with your parents before moving in. While living together, it’s not just important to respect each other’s need for personal space—it’s essential. 

Establish boundaries and communicate your expectations for common issues like noise levels and shared spaces. 

Unforeseen problems are likely going to crop up; no one can predict all the issues you might face. Regularly check in with your parents to discuss any concerns, changes in plans, or updates. This will help avoid misunderstandings and conflicts.

Make a budget and savings plan 

Since the main point of moving in with your parents in the first place was to save for a house, then it’s going to be pointless if you don’t have a budget and savings plan. 

Consider the following: 

• Calculate your monthly income and expenses
• Figure out how much you’ll be able to save by living with parents 
• Set a goal for the amount of money you ultimately want to save
• Give yourself a tentative timeline
• Allocate portions of your income towards your savings goals, debt repayment, and emergency savings

This will go a long way to alleviate any questions about your progress, both from your parent’s perspective and your own. 

Contribute to household expenses if possible 

Even if your parents don’t ask for rent, consider contributing to utilities, groceries, or other household costs. This will help you develop budgeting habits and show appreciation for their support.

Plus, your parents are likely trying to save for their retirement. Contributing to everyday expenses or helping them pay off their mortgage could benefit everyone in the long run. 

Is it a good idea to move back in with parents to save for a home?

Not taking into account your particular relationship between you and your folks, there’s little doubt about it—moving back in with your parents to save for a house can be a practical and financially savvy option. 

The benefits are clear: 

• Substantial savings on rent and expenses 
• Faster debt repayment 
• Accelerated savings for your dream home
• Learn how to budget without the same consequences as being on your own

It’s no wonder that many young adults in America are still choosing this path as a means of getting their own place in the future. 

Nonetheless, it’s essential to consider both the pros and cons, including potential adjustments and challenges. 

To make the most of this opportunity, establish clear expectations and boundaries with your parents, maintain open communication, and work together to create a budget and a reasonable savings plan that aligns with your homeownership goals.

When you’re ready—get started with Homefinity

At Homefinity, we understand that saving for a down payment is often a significant hurdle for first-time homebuyers. Cost can make the difference between a house and a home. 

That’s why our team of dedicated loan officers is here to help you navigate the path to homeownership. 

Reach out to us today to learn more about pre-approval, what you need to save for a down payment, and how to achieve your dream of homeownership. 

We’re here to support you every step of the way on your homeownership journey.

Photo by Karolina Grabowska