The young Australian adults who aren't moving out of their parents' home

Australians don't think young adults should be living with their parents by the time they're 26. But more of them are, according to a new report. Here's how things have changed over two decades.

More young Australian adults are living with their parents compared to two decades ago, according to a new report. Source: Getty / Fotostorm

Many Australians might think it's unacceptable to live at home beyond your mid-20s, but more of us are doing it than we were two decades ago.

The Household, Income and Labour Dynamics in Australia (HILDA) survey has tracked the same 17,000 people in more than 9,000 households since 2001 and recently published its latest findings from its 2021 poll, when most of Australia was in lockdown.

Part of the survey examines how many young adults (aged 18 to 29) still live at home. The proportion is higher than it was 20 years ago, although researchers note there was a surge in around 2010 for men and 2015 for women, with the trend having remained relatively stable since.

A separate poll taken by financial comparison site Canstar in December found that half of more than 2,000 adult respondents believed Australians should no longer be living with their parents by the time they're 26 years old.

HILDA found that 31.2 per cent of men aged 26 to 29, and 27.5 per cent of women in that age group were still living at home in 2021 — up 9.9 points and 11.6 points respectively when compared to 20 years earlier.

The most significant change over two decades was observed among women aged 18 to 21, with 79.5 per cent of this cohort still residing with their parents (up 17.6 points)

Overall, 54.3 per cent of men aged 18 to 29 were still living with their parents in 2021 (up 7.7 points compared to 2001), as were 46.7 per cent of women (up 10.8 points).

Once a young adult moves out of home they are unlikely to return, according to HILDA, although it found about 3 per cent of men and women in that age cohort did.

"Rates of return to the parental home are particularly sizeable for those aged 18–21, with 8.4 per cent of men and 8.1 per cent of women in this age group moving back in with their parents over the 2018 to 2020 period," the report read.

Young adults living in NSW, the ACT, and Victoria — where house prices and rents have grown significantly — were less likely to leave home compared to those in other parts of the country, according to HILDA.

"Notably, there was a significant drop in the rate of young males leaving their parental home in New South Wales and the Australian Capital Territory between 2001 and 2003 (23.8 per cent) and 2018 and 2020 (13.5 per cent)," the report read.

"This trend may be attributed to factors such as a larger education offering, rising housing prices, and the impact of the COVID-19 pandemic."