Coresidence of elderly parents and adult children is a special form of intergenerational relations that is not uncommon in European societies. Why do adult children and parents live together? In what way do individual characteristics, family structures, and cultural contexts play a crucial role? How can differences between countries be explained? Are there discrepancies between adult generations sharing the same household and those who live in separate homes within the same building (“near coresidence”)? The empirical analyses reported in this article are based on the Survey of Health, Ageing and Retirement in Europe. The findings prove the importance of individual needs and opportunities of children and parents as well as the relevance of family structures. Country comparisons show that welfare-state arrangements have a substantial effect. In fact, coresidence appears to be a response to economic insecurities at both individual and societal levels.