More than half of Australians are open to living in a multigenerational household as housing affordability pressures push families to pool resources and share homes.
New research has found 57 per cent of the population would consider living with multiple generations of their family under one roof, while 65 per cent believe the traditional path to home ownership is broken for the next generation.
The study by research firm McCrindle found 65 per cent of respondents agreed the traditional route to buying a home was no longer working for the next generation, as soaring house prices and housing shortages force families to consider new living arrangements.
Demographer Mark McCrindle from McCrindle Research.
The findings come as Australia’s population is forecast to reach 30 million by 2030 and the nation faces a projected housing shortfall of 262,000 dwellings by June 2029.
Housing affordability has deteriorated dramatically over the past four decades, particularly in the nation’s capitals.
In Sydney, the median house price is now 16 times average annual earnings, more than triple the affordability ratio recorded in 1981 when homes cost around five times annual incomes. Brisbane has reached 11 times average earnings, while Perth sits at 11 times and Melbourne at 10 times.
The affordability squeeze is also delaying financial independence, with 70 per cent of 19-year-olds still living at home in 2021 — up from 60 per cent in 2006.
More family members are choosing to live with each other due to rising cost of living and housing affordability pressures.
As home ownership becomes increasingly difficult, multigenerational living is moving into the mainstream.
PRD Real Estate chief economist Diaswati Mardiasmo said the group’s own research reflected an increase in multi-generational living in recent years due to affordability pressures.
“Now, we are seeing multi-generational living becoming more integrated as a life choice within the general population — increasingly more so in metropolitan areas,” Dr Mardiasmo said.
“The reason behind multi-generational living remains the same over time — housing affordability, cost of living, caregiving — but in many cases, it has now transitioned from a nice option to have to ‘well, this is the only way we can make it work’.
“In short, for many, multi-generational living is now no longer an option or preference, but a necessity.”
PRD Real Estate chief economist Dr Diaswati Mardiasmo. Supplied
The research found almost half of Australians have lived in a multigenerational household, with the trend particularly strong among culturally diverse households.
Openness to multigenerational living rose to 71 per cent among Australians who spoke a language other than English at home.
While affordability is driving interest in shared living arrangements, Australians remain protective of their personal space.
Nearly three-quarters of respondents said they would rather live in a smaller apartment with complete privacy than share a larger, higher-quality home where privacy is compromised.
More than half of all Australians are considering moving in with family members. Picture: Jake Nowakowski.
The preference was strongest among Gen Z and Baby Boomers, with lifestyle differences, noise and household rules identified as the biggest barriers to living under one roof.
The findings suggest future housing demand may increasingly favour homes designed to accommodate multiple generations while still providing independent living zones, separate entrances and private retreats.
With 77 per cent of Australians concerned about the cost of living, researchers found financial pressures were a major factor behind changing attitudes toward shared housing.
However, the appeal extends beyond affordability, with many respondents citing stronger family connections, reduced loneliness and the ability to share childcare and aged care responsibilities as key benefits.
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