‘I love my dear son/daughter, but I wish they would just move away…’
It used to be so taboo that few parents would dare say it out loud, but this complaint is becoming increasingly common among older generations.
While parents of 20-somethings understand the difficulties of the housing market (and the clear benefits of their adult children living rent-free at home while saving for a deposit), they are also not immune to the challenges of keeping their children living out of pocket. rear is between 20 and 30 years old.
This frustration is backed up by statistics: Cash-strapped parents, many of whom left home at age 18 and never looked back, are spending thousands more on food, water and electricity bills just to house their adult children for a cost of living crisis. .
Unaffordable homes and the housing vacancy crisis mean Millennial and Gen Z Australians are living at home longer, and this is costing long-suffering parents $4,700 a year.
Australia also has some of the most expensive homes in the world compared to income, meaning those in full-time jobs are living with their parents for longer in the hope of saving for that 20 per cent mortgage deposit.
The majority of young men between 18 and 29 years old still live at home with their parents, and 54 percent are in this situation, compared to 47 percent of young women.
Young people are increasingly staying in the family home because moving is simply too expensive, according to a survey of 17,000 people conducted by the University of Melbourne on Household Dynamics, Income and Work in Australia.
Cash-strapped boomer parents are spending thousands of extra dollars a year on groceries, electricity and water bills just to house their adult children during a cost-of-living crisis.
Professor Roger Wilkins, a social researcher, says more young people are now going to university, causing a delay in achieving typical life milestones.
“We have seen an increase in participation in higher education, a decrease in full-time employment opportunities for young people, an increase in the cost of housing and a trend towards later marriage and family formation,” he says .
“Traditional markers of adulthood now occur later in life.”
Finance author and mother of two, Nicole Pedersen-McKinnon, warns that the cost of keeping adult children at home could be financially catastrophic for parents.
“It’s a real danger: a total cash catastrophe or what I call a ‘cash disaster,'” he tells me.
Nick Tebbey, national chief executive of advisory group Relationships Australia, also says tensions between parents and their adult children still living at home can cause permanent damage to the relationship.
“Like any tension that is left to grow, it will only get worse,” he explains.
“We certainly see situations where relationships between adults and their adult children become fractured, and sometimes it takes a lot of work, if at all, to get that back together.”
Finance author and mother of two, Nicole Pedersen-McKinnon, warns that the cost of keeping adult children at home could be financially catastrophic for parents.
The financial costs for parents are not the only problem, as parents also have to adapt to their children bringing home new sexual partners, and younger ones increasingly connect through dating apps.
“In this situation, it’s important for parents to be clear about what their expectations are, but also to have some understanding that their children are from a different generation,” Mr Tebbey tells me.
Pedersen-McKinnon advises parents to charge half the market rent in their suburb to cover the bills and also help their children save for a mortgage deposit.
“Use it as a financial discipline practice, but give your child that extra ability to then save the excess,” he says.
“Even the exercise of paying the pension, if that transaction is official, will be an important part of demonstrating to a bank that they are a good risk for a loan.”
Those feeling generous could also return alimony money to their children when they qualify for a loan to help with mortgage payments.
‘Then you could save half of what they pay you and give it to them as a surprise bonus; nothing is expected, they have to work hard; They are earning it, they value it, they don’t take anything for granted,” he says.
Housing-rich but cash-poor baby boomers and older Generation X parents are now the ones struggling financially, having to pay more for food and electricity bills during a cost of living crisis.
Parents with adult children at home typically pay $3,314 more per year in child support for each son or daughter still living at home.
Relations Australia national chief executive Nick Tebbey says tensions between parents and their adult children still living at home could cause permanent damage.
This is based on consumer group Choice’s finding that 14 common items – including milk, bread, sugar, pasta, tea bags, fruit and vegetables – cost $63.74 a week based on the average purchase at Coles, Woolworths and Aldi.
Electricity bills also cost $646 more per year, with Canstar estimating that it costs an individual $161.50 per quarter if they use more appliances.
Water bills also cost $179 per person each quarter, on average, adding up to $716 a year.
In addition to contributing to expenses by paying for food, adult children living at home could make things worse if they don’t do some of the household chores, such as vacuuming, washing dishes, or cleaning the bathroom.
“It can lead to different expectations or different interpretations of what is acceptable,” Mr. Tebbey adds.
Nicole Pedersen-McKinnon is the author of How to Become Mortgage Free Like Me.