The cost of living is surging across Australia and the higher expenses are forcing more people to move back in with their parents.
According to a Finder survey of 1058 people, 13 per cent of Australians – 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.
Almost one in three (31 per cent) of the “boomerang” adult children, moved back in with their parents due to rental affordability concerns.
A further 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 many young Australians have 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,” Ms 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.
“But it’s a chance to get your finances in order and settle any debts before jumping back out there.”
Ms Megginson said many young adults were forced to move back in with their parents not that long ago when lockdowns started in 2020.
More than one in four (26 per cent) Australian households included an adult child after the lockdowns began, according to Finder research from May 2020.
“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.”
Ms Megginson said it was critical for those struggling financially to stick to a budget.
“Start cutting out non-essentials and look at where and how you can save money,” she said.