Australians are moving back in with their parents as the cost of living continues to spiral, according to new research by .
A nationally representative survey of 1,058 respondents revealed 13 per cent of Aussies – equivalent to 858,000 households – have had an adult child move back home in the past 12 months.
This includes 5 per cent who are about to move back out, and 4 per cent who are about to move in.
Why Aussies are moving back home
Of those who moved back home or had their adult children move back in, almost 1 in 3 did so because paying for rent proved too difficult.
A whopping 35 per cent moved back or had a child move back to save money for a home deposit – equivalent to 300,000 households.
Despite record low unemployment, 19 per cent of those who moved home or had a child return were forced to do so because of the loss of a job.
Senior editor of money at Finder Sarah Megginson said some Aussies had been forced to make significant changes to their lifestyle.
“Interest rates are going up and the cost of living pressure is coming from all angles, making it difficult to juggle everything at once,” Megginson said.
“Moving back in with the family can be a big adjustment. The thought of losing a sense of independence and having to start from scratch is scary.”
However, Megginson said many young people were using the experience to get their finances in order and settle any debt before jumping back out there.
Megginson said the pandemic saw a first wave of ‘kidults’ moving back home when COVID-19 hit our shores.
Managing financial stress
“Our research found that 21 per cent of these households were put in this situation as a reaction to COVID-19,” she said,
“With inflation soaring and rental vacancies at an all-time low two years on, the phenomenon continues."
Megginson said it was critical, especially at the moment, to stick to a budget.
“Start cutting out non-essentials, and look at where and how you can save money,” she said.
“If you find yourself under severe financial stress, contact your providers and ask for a payment plan or contact the National Debt Helpline on 1800 007 007.”