Increasing numbers of younger Australians are being forced to move back in with their parents as the cost of living bites.
According to Finder, 10 per cent of Australians – or 662,000 households – have either moved back home with their parents or had an adult child return home in the past year.
This includes 3 per cent who are about to move back out and 3 per cent who are about to move back in.
Of the young Australians moving back in with Mum and Dad, 36 per cent did so to try and save money.
While 30 per cent said soaring rents forced them to move back home, and a further 30 per cent wanted to save money for a house deposit.
Head of Consumer Research at Finder, Graham Cooke said some Aussies are being forced to make major changes to their lifestyles.
“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,” Mr Cooke said.
“Many are unable to juggle all their expenses and afford to live independently so they are moving back in with their parents.”
Despite record-low unemployment, 14 per cent of those who moved home or had a child return were forced to due to the loss of a job.
While 23 per cent did so to help with caring requirements.
Mr Cooke said moving back in with relatives was a huge adjustment, but the fastest way to tackle debt and save money.
“Returning to the nest can be a major challenge, and many are not fortunate enough to have the option to do so,” he said.
“Prioritising a budget is critical – there’s no point transitioning home only to keep up the same spending habits.
“Start cutting out non-essentials and look for ways you can save money.
“Working out all your expenses to the smallest detail will give you an idea of how much capacity you have to save.”