Home Adult site The rise of the boomerang generation as the cost of living forces adult children to return home

The rise of the boomerang generation as the cost of living forces adult children to return home

More adults are returning home with their parents as the Cost of life keep biting, new research has found.

In the past year, 13% of Australians have either moved with their parents or brought an adult child home, according to a survey of 1,058 people polled by Australian comparison site Finder.

This includes five percent of respondents who were about to move and four percent who were about to move in.

The total number equates to 858,000 households across the country.

Vacant homes are at record highs in various cities across the country, resulting in high prices for renters. (Adobe Stock)

Of those who returned home or brought their adult children back, 36% did so to meet care needs, for example with parents or elderly children.

However, almost as many – 36% – have decided to save for a home deposit. 31% did so because their rent had become unaffordable.

The Reserve Bank of Australia has raised its key rate by 2.25% since May with five consecutive hikes.

Mortgage holders are under pressure, but so are renters, with landlords raising rents as they seek to recoup the cost of rate hikes in a low vacancy market.

Sarah Megginson, money editor at Finder, said some Australians have been forced to make significant lifestyle changes.

“Interest rates are rising and cost of living pressures are coming from all angles, making it difficult to juggle everything at once.

“Coming back to live with 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 your debts before you leave again.”

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Anyone in serious financial crisis can contact the National Debt Helpline on 1800 007 007.