One in 10 adult kids moving home to save

Soaring rents and cost of living pressure is forcing adult kids to move back in with mum and dad to cut expenses and save for their own home.

Adult children are moving back in with parents to cut costs, save money and gain housing surety given the tight rental market.

A new survey by financial comparison site Finder found one in 10 young adults – the equivalent of 662,000 households – has moved back home in the past year, with more than a third (36 per cent) hoping to bolster savings.

Finder’s Graham Cooke said some Aussies are being forced to make major lifestyle changes.

“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.”

Rental prices have increased by 14.6 per cent in the past 12 months as rental vacancy rates in major cities remain tight, with just 1 per cent of rental stock available nationally.

While unaffordable rents were the main factor for 30 per cent of people moving home, a similar proportion were using the opportunity to save money for a house deposit.

After seeking more space in the pandemic, many are now forced to live with more people to reduce costs, says PropTrack senior economist Paul Ryan. “A key way people have responded has been with increased sharing, with demand on flatmates.com.au soaring in 2023.”

The bank of mum and dad is an attractive way for first-home buyers to afford a deposit. Digital Finance Analytics estimates the outstanding balance of familial borrowing – approximately $37.9bn – would make the group the nation’s 10th-largest lender.