Baby boomers are moving in together to save money

Four decades later, the idea of housemates late into adulthood is experiencing a revival, but with financial factors front and center. As boomers live longer and retire without the financial safety net of employer-sponsored pensions, covering the rising costs of food, housing and insurance become major considerations. Linda Hoffman, president and CEO of the New York Foundation for Senior Citizens, which runs a home-sharing program , noted an increasing number of applications as finances become more of a stressor.

Even before the pandemic, demographics were shifting toward nonfamily households. In 1960, 85 percent of households were composed of families, according to the Population Reference Bureau. By 2017, that figure had fallen to 65 percent of households.

As Americans continue to age, Harrell and others expect growing demand for more housing options. “As a society, we’ve been building and thinking about younger families and building housing and communities for younger people,” he said.

The growing interest in home sharing, especially for those boomers who are house-rich and cash-poor in expensive housing markets, is being cultivated by nonprofit and commercial programs as well as municipalities. Since 2015, New York, Seattle, Denver, Tucson, Northern California and the metro Washington area all have established or are launching programs.