Sydney’s property market is making it harder to move out and forcing more families into smaller homes.
In some cases, families are sacrificing the space of a traditional home in exchange for a more affordable, more manageable apartment that prioritises the convenience of an inner-city location.
A Finder survey from 2023 revealed that one in 10 Australians – equivalent to 662,000 households – had either moved back home with their parents or had an adult child return home in the past year.
The leading reasons were soaring rents and the opportunity to save money for a house deposit.
Ray White Lower North Shore group director of projects and developments Tim Abbott.
Ray White Lower North Shore director Tim Abbott said it was becoming more of a trend for families with older children in high school or university to opt to live in apartments.
“There is quite a growing demand for that,” he said. “I think that makes sense for them to have a dwelling big enough that’s a comfortable size for the kids to stay – because kids are now staying a bit longer while they save up for a property themselves.”
Mr Abbott said convenience and location were two of the main drawcards for families buying a unit.
“There’s convenience in the fact that they don’t have to do the maintenance, and the fact that they can just lock up and leave,” he said. “But also proximity to the city, particularly if the kids are at university or at school.
“Being in a handy location with those attributes is quite appealing – not to everybody – but certainly to a growing number.”
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Jane Turner (centre) with husband Ward Swadling and daughter Lucy at their apartment in Erskineville. Picture: Britta Campion
Jane Turner and her husband bought an apartment in Erskineville in 2017 for $1.01m, after selling their home of 23 years in the area.
They were looking to downsize and free up some capital, but still wanted to remain in the inner west. Their daughter Lucy, aged 24, lives with them in their two bedroom unit.
While Ms Turner is happy with the amount of space, she said it this was not the case for everyone.
“Some of the apartments you’re seeing now, the rooms are so so tiny,” she said.
“Even if they are two bedrooms and they’ve got two bathrooms, it really doesn’t compare with the kind of space that we have here, which is not huge by any means.”
Ms Turner said it would be “great” if her daughter was able to move out “for her sake and our sake”.
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The family have been living in the apartment since 2017. Picture: Britta Campion/The Australian.
However, the reality is that so many young people cannot afford to leave home.
“Now, how could our daughter, for example, even if she gets a few friends to share the rent with her … there’s no way they can afford it,” Ms Turner said.
“I remember back in my day … we’d all be renting some place in Darlinghurst or something like that with four or five friends and it was totally affordable.”
Another drawback of apartment living for Ms Turner has been strata fees, which have nearly doubled since she first bought the property.
“Our strata fees initially … were about the equivalent of $150 a week,” she said.
“It’s fair enough because it makes our living conditions more comfortable.
“Then they had to do roofing work, so then our strata fees almost doubled with very little notice. They’re close to $300 a week now.”
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Willoughby Grounds, an under development condominium complex in Willoughby.
Ms Turner said her husband would like to eventually use Lucy’s bedroom as a studio, so that he can pursue his passion for painting.
“I guess we are compromising there,” she said. “But we’re not gonna kick our daughter out because there’s no bloody way she can afford to rent.”
Despite these compromises, Ms Turner said the financial and personal freedom of moving into an apartment has ultimately improved her family’s quality of life.
“I haven’t looked back,” she said. “I just really enjoy living here.”
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The complex is offering three-bedroom and four-bedroom apartments to appeal to families.
Given the demand, property developers are increasingly looking to cater to the market for families.
Developments such as the under-construction Willoughby Grounds on Sydney’s lower north shore offer three and four-bedroom units in the hope of appealing to this crowd.
Mr Abbott said these apartments were priced from $2.7m-$3.5m.
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