Half of Australian Young Adults Live with Parents Due to Housing Cost Burden

Young Adult Co-residence Rate Rises 11 Percentage Points Over 23 Years

According to the Hilda survey released by the Melbourne Institute of Applied Economic and Social Research, 50% of Australians aged 18-29 lived with their parents in 2024. This represents a continuous increase from 39% in 2001.

The survey has tracked the same households since 2001, with approximately 9,000 households and 17,000 individuals currently participating. Males are more likely than females to live with parents, though the gap has narrowed somewhat over 23 years. As of 2024, 36% of young adults living with parents are full-time students.

Notably, most of the increase in co-residence rates occurred during the first decade of the 2000s. The survey's co-author cited extended higher education periods and increased costs of independence as primary factors.

Housing Cost Burden Reality

Weekly mortgage repayments surged between 2021 and 2024. As the central bank raised interest rates, combined principal and interest repayment burdens reached historic highs. Private rental costs remained stable throughout the 2010s but have risen continuously since.

The Hilda survey defines "housing cost burden" as cases where housing costs exceed 30% of disposable income and the household falls in the bottom 40% of income earners.

In 2024, over 31% of Sydney renters met this criterion, approximately double Adelaide's rate. Brisbane ranked second highest at 26%, with mainland capital cities overall seeing a quarter of renters experiencing housing cost burden.

The situation is more severe for regional renters. 30% face housing cost burden, nearly double pre-pandemic levels. In contrast, approximately 10% of mortgage holders experience housing cost burden, remaining relatively stable over the past 20 years.

Income Rose but Economic Perception Worsened

Median disposable income peaked in 2021 before being hit by surging living costs. In 2024, typical household income stands lower than the 2021 peak but higher than 2019 levels.

Despite income increases, Australians' reported financial satisfaction fell below pre-COVID-19 levels. The report's lead author stated "the post-pandemic cost of living shock is clear."

Financial satisfaction declined across all age groups between 2020 and 2024, with those 65 and older being the only exception. The proportion reporting they enjoy life "not at all" or "hardly" due to day-to-day financial management increased from 11.3% in 2020 to 12.7% in 2024.

The proportion agreeing or strongly agreeing they can manage day-to-day finances fell from 62.1% in 2020 to 58.5% in 2024. Those reporting current spending is comfortable relative to income also decreased from 60% to 53.8% over the same period.

Source: The Guardian