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I think the point is more that multi-generational households would occur naturally, but as you alluded modern society gets in the way. I have a similar situation as you. It's interesting to imagine what policies would have incentivized us to settle down nearer our parents. Like, what would have made that a palatable option?

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My sister is in academia, so she went where she could get a tenure-track position. Four months after I graduated college, I had exactly one job offer, it was on the opposite coast.

After I accepted my job far away, I did hear back from a company closer (but by no means close) to my parents, it was a one year contract for less than half what I was making in a permanent position. I would have taken a pay-cut to be closer to my parents (particularly since my SO at the time refused to relocate to California), but a non-permanent position for $30k/year just didn't seem like a wise life-choice.

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