Young Aussies are moving back home to live with their parents as the housing crisis deepens, according to new research.
A survey by Finder, Australia’s most visited comparison site, revealed one in 10 (10%) Australians – equivalent to 662,000 households – had either moved back home with their parents or had an adult child return home in the past year. This included 3% who were about to move back out, and 3% who were about to move back in. Of those who have moved back home or had an adult child move back in, almost 2 in 5 (36%) did so to save money. Soaring rents are a big factor, with 30% admitting they moved home as rent became unaffordable. The same amount (30%) used it as an opportunity to save money for a house deposit. Graham Cooke, head of consumer research at Finder, said some Aussies were being forced to make major changes to their lifestyles. “Soaring living costs have left thousands of young adults struggling to make ends meet – with rate increases having a higher impact on renters than homeowners," he said. “Many are unable to juggle all their expenses and afford to live independently so they are moving back in with their parents.” Despite record low unemployment, 14% of those who moved home or had a child return were forced to due to the loss of a job. A further 23% did so to help with caring requirements. Mr Cooke said moving back in with relatives is a huge adjustment, but the fastest way to tackle debt and save money. “Returning to the nest can be a major challenge, and many are not fortunate enough to have the option to do so. “Prioritising a budget is critical – there’s no point transitioning home only to keep up the same spending habits. “Start cutting out non-essentials and look for ways you can save money. “Working out all your expenses to the smallest detail will give you an idea of how much capacity you have to save,” Mr Cooke said.
Tips to save on your rent if you can’t move back in with your parents:
Roommates: Sharing a place with one or more people can dramatically cut your living expenses. The more people you live with, the cheaper your rent typically becomes.
Negotiate with your landlord: If you've been a reliable tenant, your landlord might prefer to keep you at a slightly lower rent than risk having the property vacant or getting an unreliable tenant.
Consider different neighbourhoods: Often, rents vary widely between neighbourhoods in the same city. Research areas that are up-and-coming or less popular but still safe and convenient.
Downsize: A smaller apartment or a studio might be cheaper than a one-bedroom or larger place. Consider what space you truly need.