Australia’s ongoing housing crisis is compelling more and more Australians to return to the nest, seeking refuge with their parents, according to new research conducted by Finder, one of the country’s most frequented comparison websites.
In a comprehensive survey of 1,073 respondents, Finder unearthed a striking statistic: 10% of Australians, equivalent to a substantial 662,000 households, have either recently moved back to their parental homes or welcomed an adult child back into their own homes over the past year.
This notable figure encompasses both those who are preparing to move out (3%) and those who are on the brink of moving back in (3%).
Among those who have opted for this living arrangement shift, nearly 2 in 5 (36%) stated that their primary motivation was to save money, reflecting the financial strains brought about by the housing crisis.
Escalating rental costs have played a pivotal role, with 30% of respondents admitting that they returned home due to the increasing unaffordability of renting.
In an equal proportion, 30% seized this opportunity to bolster their savings, particularly for the purpose of accumulating funds for a future house deposit.
Graham Cooke, the Head of Consumer Research at Finder, emphasised that, despite record-low unemployment rates, 14% of individuals who resorted to moving back home or had their adult children return cited job loss as the driving factor.
“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.
“Many are unable to juggle all their expenses and afford to live independently so they are moving back in with their parents.”
A further 23% found themselves compelled to make this shift in order to fulfill caring responsibilities.
Cooke highlighted the significant adjustments Australians are making by moving back in with family members, noting that it serves as a swifter means of managing debt and building financial reserves in a challenging economic climate.
“Returning to the nest can be a major challenge, and many are not fortunate enough to have the option to do so,” Cooke said.
“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.”
