More young adults staying home, for longer

Traditionally early adulthood, for Australians aged between 25 and 34, was the time when people formed long-term relationships and bought their first home. In 1995–96 the average age of first home buyers purchasing a new home was 33 years, whereas 22 years later in 2017–18 the average age of first home buyers was 36 years.

As part of this trend early adults (aged 25 to 34) are increasingly staying in their parent’s home longer (or returning home) or living in shared housing. In 2003–04, 14 per cent of early adults were living at home with their parents, by 2015–16 the share had increased (by 43%) to 20 per cent. Over the same time period, the share of early adults in group households increased from 11 per cent to 13 per cent (an 18% increase).

The reasons why early adults stay living with their parents are suggested in findings from a recent AHURI research survey, with the most common reason being that they are trying to save enough money to be able to move out.

Table 1: Reasons for early adults (25–34 years) to move back home.

^{Source: Parkinson, S., Rowley, S., Stone, W., James, A., Spinney, A., Reynolds, M. (2019) Young Australians and the housing aspirations gap, AHURI Final Report No. 318, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/research/final-reports/318, doi:10.18408/ahuri-5117101.}

For those early adults who are sharing in a group house not being able to afford any other housing option is the biggest reason for continuing with share living.

Table 2: Reasons for early adults (25–34 years) to share in a group house.

^{Source: Parkinson, S., Rowley, S., Stone, W., James, A., Spinney, A., Reynolds, M. (2019) Young Australians and the housing aspirations gap, AHURI Final Report No. 318, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/research/final-reports/318, doi:10.18408/ahuri-5117101.}