Half of young Australians still live with parents as housing costs soar
The latest HILDA survey shows 50 per cent of Australians aged 18 to 29 now live with their parents, up from 39 per cent in 2001, as stagnant wages and rising housing costs reshape the path to independence.
The Household, Income and Labour Dynamics in Australia survey, run by the Melbourne Institute, has tracked more than 17,000 people in 9,000 households since 2001. The 2024 data shows the sharpest change among the youngest adults: 85 per cent of those aged 18 to 21 now live at home, up from 69 per cent in 2001.
For those aged 22 to 25, the share rose from 35 to 48 per cent. Among those aged 26 to 29, it went from 17 to 22 per cent. Men are more likely to stay than women, with 55 per cent of younger males at home compared with 45 per cent of females.
When is it 'too old' to live with parents?
A Finder survey of 1,010 Australians in May found the average person considers 31 the age at which living at home becomes unacceptable. Gen Z and Baby Boomers were the least tolerant, both setting the cut-off at 30. Millennials and Gen X were more relaxed, accepting living at home until 32.
Finder personal finance expert Sarah Megginson said a stigma remains around living with parents in Australia, despite cost of living pressures.
There's a bit of shame attached to it. But in other cultures, multi-generational living is very normal and very accepted, and it's not a sign that you have failed,
she said.
Megginson noted attitudes have shifted considerably. All generations surveyed agreed the cut-off is now 30 or older.
It's pretty much accepted now that to be living at home in your 20s is completely normal. That is such a generational shift,
she said.
She pointed to her own mother as an example of how much has changed: by 21, she was married, had moved out and had three children.
Housing stress at record levels
Housing costs have risen sharply since 2021. The HILDA report found 36 per cent of renters and 30 per cent of mortgage holders now spend more than 30 per cent of their disposable income on housing, the common threshold for housing stress.
Report co-author Professor Roger Wilkins said researchers had seen big jumps in the number of people under pressure.
In 2024, it affected 23 per cent of private renters across the country, and that number is very similar for those in social housing,
he said.
For young mortgage holders, the stress rate has stayed relatively stable, from 8.6 per cent in 2001 to 9.9 per cent in 2024 in capital cities. The report suggests mortgage entry is now increasingly limited to those with higher earnings, substantial savings or family wealth.
The picture is more concerning for young renters. About 39.5 per cent now spend more than 30 per cent of their income on rent, up from 25.8 per cent in 2001. Roughly 25.3 per cent are in housing stress, up from 17.6 per cent.
Wages not keeping pace
Despite record employment levels, Professor Wilkins said earnings are not keeping up with rising costs.
Our earnings are not rising enough to keep up with the big increases in housing costs and other non-discretionary spending, so the average person is likely to be under more financial pressure,
he said.
The report links these trends to declining homeownership and rising intergenerational wealth inequality. Each successive cohort of young adults faces greater affordability pressures than the one before, and more remain in the parental home for longer.
Megginson does not expect the trend to reverse soon, given rents at historical highs.
Renting in many areas now is just as expensive as having a mortgage,
she said.
She advised young Australians to set a timeframe and plan, and to have open conversations with parents so expectations are clear on both sides.
Why are so many young Australians staying at home?
The main drivers are stagnant wages, sharply higher housing costs and limited rental supply. The HILDA data shows housing stress has climbed across all tenures since 2021, making independent living less affordable for many young adults.
Is living with parents in your 20s becoming normal in Australia?
Yes. The Finder survey found all generations now accept living at home through the 20s, with the average cut-off age set at 31. This marks a major shift from earlier decades when young adults typically left home in their early 20s.
What can young Australians do about housing affordability?
Experts recommend setting a clear savings plan, discussing timelines with parents, and considering shared housing or regional areas where rents are lower. Government policy responses remain a subject of ongoing debate.