Young adults in Australia are increasingly delaying independence due to a housing crisis that has made affordable options scarce. With soaring rental prices and stagnant wages, many young people are forced to remain in their family homes longer than previous generations, leading to significant mental health challenges.
Census data reveals that homeownership among young adults has steadily declined since the 1980s, while the likelihood of experiencing “rental stress” — spending more than 30% of income on housing — is particularly high for this demographic. In a study published in March 2024, researchers interviewed female and gender-diverse Australians aged 18 to 30 about their housing experiences. Many participants expressed the emotional toll stemming from the instability of frequent moves and rising rents.
The Emotional Cost of Living at Home
A young woman in her late 20s highlighted the exhausting cycle of short-term leases and rent increases, stating, “The constant cycle of living in a place for a year, getting a massive rent increase, having to find a new place and move again is exhausting, financially unsustainable, and demoralising.”
Survey data from Australia indicates that 54% of young men and 47% of young women aged 18 to 29 are still living with at least one parent. While some young adults find comfort and support in multigenerational living arrangements, others struggle with the emotional implications of this setup. One participant shared, “It’s like you don’t pay with money to live with family […] but you pay with your mental health.”
Another participant, a non-binary individual in their early 20s, expressed feelings of confusion about their identity while still living at home, saying, “Even now I’m like learning how to be my own person while still being under my parents’ roof […] still living at home is a bit emotionally kind of weird.”
Intergenerational Effects of Housing Stress
The housing affordability crisis does not only affect young adults; their parents, often referred to as the “sandwich generation,” are also feeling the impact. Many midlife adults are approaching retirement with mortgages or high rental costs, while simultaneously caring for both their children and aging parents.
One young woman in her early 20s described the burden of helping her single mother with mortgage payments, stating, “I honestly don’t want to end up getting married anytime soon because when I want to be with my partner, I want to be able to help him with if we end up having a house or renting or whatever, not having to think about my mum and her mortgage.” This shared financial stress can inhibit young adults’ ability to plan for their futures, including starting families.
Research suggests that the rising cost of housing is contributing to a decline in birth rates among Millennials and Generation Z. A non-binary participant in their mid-20s remarked, “The biggest negative impact of being stuck on the lowest end of the rental market is that it severely limits my ability to plan to start a family.”
To address these complex intergenerational housing issues, a comprehensive approach is necessary. Innovative housing policies can help alleviate the stresses faced by various age groups.
Community-led housing models, such as co-housing and housing cooperatives, are gaining traction in Australia. These initiatives have been linked to improved well-being across different life stages. A national study examining rental housing cooperatives in the community housing sector found that residents from various age groups value the intergenerational support, friendship, and care that come with mixed-generation living arrangements.
Moreover, urban planning that focuses on intergenerational interactions, such as colocating aged care facilities with childcare services, can foster connections and reduce loneliness among both younger and older generations. Adapting existing housing policies to better accommodate shared living arrangements or multigenerational family structures could also provide immediate relief.
As the housing crisis continues to challenge young Australians, understanding the full spectrum of its impact on mental health, family dynamics, and future planning is vital. Addressing these issues not only benefits individuals but can also strengthen communities and promote overall well-being.
The ongoing research by Wendy Stone and Zoe Goodall, funded by the Australian Housing and Urban Research Institute (AHURI) and supported by various organizations, aims to further explore these challenges and inform policy changes that can better meet the needs of all generations.
