The rising cost of housing, stagnant wages, and other factors are keeping many adult millennials at home.
Sixty-two percent of adult millennials said they couldn’t afford to move out of parental homes, according to CoreLogic’s new report, Perceptions of Housing Affordability Report 2017. Meanwhile, 32% of respondents said living with parents helped keep their expenses low, and 20% admitted they found it “too comfortable at home.”
As for when they expected to move out, more than one-fifth (21%) of respondents said they didn’t expect to move out until they turned 30, and 45% said they aimed to move out between the ages of 25 to 29.
A mere 4% of adult millennials still living at home owned investment property.
According to Lisa Claes, CEO of CoreLogic, the surge in the number of young adults choosing to live at home could give rise to the “Cubby House Syndrome,” which would force families to pool their resources to set up semi-independent living arrangements for their adult children.
Rather surprisingly, higher wages made little difference in the perception of being able to afford to move out, with similar percentages across all wage levels. CoreLogic’s report showed that 65% of those earning less than $40K said they could not afford to move out, compared with 67% of those earning $40k-$90K, 61% of those earning $90K-$130K, and 63% of those earning $130K and more.
As for the biggest impediments to housing affordability, 49% of millennials said having a deposit remains the biggest impediment. Other impediments include the cost of stamp duty, the certainty of employment, and interest rates.
Overall, the report said that 53% of Australians aged 18-64 owned a home, while 37% had never owned a home. The percentage of those who’ve never owned a home jumped to 60% for millennials aged 18-34.
CoreLogic’s report is based on a study conducted by Galaxy Research, and utilised an online permission-based panel.
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