Work

Coresidence: How parental characteristics matter

Year: 2026

Type: article

Abstract: Coresidence in the parental home is known to depend on young adult characteristics and market conditions, but there is more limited knowledge on whether or how parental characteristics matter. We model the coresidence outcome as a multigenerational joint optimization decision and use Panel Study of Income Dynamics data to examine the association of parental housing and wealth with young adult coresidence. The findings show that parental financial capacity is negatively associated with the likelihood of coresidence. Housing capacity, captured by the size and ownership status of the parental home, is positively associated with the likelihood of coresidence. We observe a stronger association of parental wealth and housing capacity with coresidence in less affordable markets and over time.

Source: Real Estate Economics

DOI: 10.1111/1540-6229.70028

Authors: Arthur Acolin, Desen Lin, Susan M. Wachter

Institutions: University of Washington, California State University, Fullerton, University of Pennsylvania

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,400