'Boomerang generation' bounces out
Dubbed the “boomerang generation” after moving back home during the pandemic, Australia’s adult children have started “flying the coop” once more, according to research by Finder.
The survey of 1,015 Australians found that 34% of households had an adult kid living at home during 2020.
Yet of those 343 Australians who either lived with their parents or had an adult child living at home in 2020, 43% said they no longer live together.
This coincided with declining unemployment figures which showed the official jobless rate dipping from 6.6% in December 2020 to 6.4% in January 2021.
The Australian Bureau of Statistics (ABS) estimated that this equates to an additional 29,100 jobs being filled as the economy continued to bounce back post-COVID.
Graham Cooke, head of consumer research at Finder, said that moving back in with mum and dad offered a financial life raft for some.
“The pandemic put a lot of people in a precarious financial position, but younger Aussies were disproportionately impacted by unemployment and underemployment,” Cooke said.
“Many young adults returned to childhood bedrooms to do Zoom calls and retake their spot at the dining room table.
“It wasn't just young people moving back home either – there were also quite a few medically frail parents who moved in with their adult children.
“But as life returns to semi-normal, many who had lost work have once again found it, and in so doing, left the nest again.”
The research found that adult kids in Victoria (24%) and New South Wales (23%) were the most likely to live with their parents in 2020.
South Australian parents were the most likely to live with an adult kid (18%) during the pandemic, compared to just 12% of parents in Queensland.
Cooke said that as a renter, it’s important to have a financial backup plan in case things turn pear-shaped.
“Not everyone has the option to move in with family if they lose their job; this is where having a rainy-day fund is important,” Cooke said.
“If you can't rely on your savings, consider moving into a share house or subletting to another roommate to lower rent costs.
“You may also want to consider things like renting out your garage or car space if you live close to the city or a train station.
AUTHOR
Chris Dastoor
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
