Birds often do reuse their nests, not always and not all birds.
But the phoebe is a perfect example of a species that uses the same nest from year to year.
It is usually the same pair of adult birds, but if misfortune happens to one, the other will probably find a new mate and return to the old nest.
It is unlikely that the occupants would be their young, because they typically disperse somewhat as they mature and move out into the world.
The subject is not fully studied, but the supposition is that they are in the same neighborhood, but not in the same “building.”