As Australian house prices and rent rates soar, more and more adult children are finding themselves staying at home longer. But while this might help them save money, it’s also creating a hidden financial burden for parents. A new report reveals that families are paying hundreds of extra dollars each year to support their grown kids, with energy bills being a major culprit.
The Growing Trend of Adult Kids Moving Back Home
Over the past few years, it’s become more and more common for young Australians to stay in the family home well into their 20s and even 30s. The struggle to save for a property, along with the skyrocketing cost of rent, has left many feeling like they have little choice but to move back in with Mum and Dad.
According to recent research from iSelect, nearly half of 18- to 29-year-olds are still living at home, a figure that’s been on the rise for a while now. This trend is putting additional pressure on parents, who find themselves bearing the financial costs of housing and supporting their adult children in ways that are often hidden from view. As it turns out, one of the most significant costs is the extra energy usage from their kids still living under the same roof.
Hidden Costs of Living Together: The Energy Bill Surprise
Sydney father Firoze Ali knows this all too well. His 23-year-old son, Arian, still lives at home, and while Firoze is more than happy to have him there, it’s definitely making a dent in the family’s finances. “Our utilities cost around $8,000 to $9,000 per year, and there are a few common areas where we all have to use the gas and electricity,” Firoze explains and reported by Yahoo Finance. He estimates that Arian’s share of the utilities is about $1,500 a year.
While Firoze has no problem with supporting his son, he points out that it’s not cheap. “Our utility bills used to cost around $700 to $800 per quarter, but now it’s more than $2,000 every three months,” he adds. The rising energy costs have hit many families hard, with government data revealing that energy bills have increased by more than 23% in the last year alone.
Why Are Adult Kids Staying Home Longer?
So why are so many adult children staying at home? Well, it’s a mix of factors. Rising rent prices are one of the most significant contributors. With rents in major cities like Sydney and Melbourne continuing to rise, many young adults are finding it increasingly difficult to afford a place of their own. A place that might have cost $300 a week a few years ago could now be going for $450 or more—often out of reach for someone just starting their career.
Another factor is the increased cost of living in general. Between grocery prices, transport, and the occasional night out, it’s easy to see how saving up for a deposit for a house can feel like a pipe dream when every paycheck is being eaten up by day-to-day expenses.
Parents’ Support: A Blessing or a Burden?
For parents like Firoze, it’s a balancing act. On the one hand, they’re happy to support their children as they navigate their way through the pressures of adulthood. On the other hand, the financial strain isn’t something to ignore. But despite the extra costs, many parents are choosing to embrace this new reality, encouraging their children to stay home longer so they can save for a home of their own.
Firoze adds, “It’s not about the money; it’s about giving him the best chance. If he can save for a deposit in the next few years, it’ll all be worth it.” It’s a sentiment shared by many parents, who view it as a necessary sacrifice to help their children get ahead in today’s competitive property market.
