The Nelson family is one of the growing umber of Victorian households embracing multi-generational living. Picture: Tony Gough.
Victorians are embracing multi-generational living in their hundreds of thousands as a growing share of families can no longer afford the Great Australian Dream on their own.
New estimates suggest more than one in every 10 households is now signing up to have parents and adult children living under the roof long term, and with many also sharing the home with grandkids it’s taking homeownership beyond the nuclear family standard that has dominated for more than a century.
Estimates from PRD put the figure at 600,000-900,000 – a sizeable chunk of the state’s 7.08 million population.
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The trend is most prevalent in Melbourne’s western suburbs.
Meanwhile realestate.com.au data shows “dual-occupancy” searches on their site surged by 385 per cent last year across the country.
In Victoria interest in the term “dual-living” almost doubled, there’s been a 50 per cent increase in those on the hunt for a granny flat and there was a 23 per cent uptick in searches for homes that offered “self-contained” accommodation.
It comes as one of the nation’s biggest builders reveals demand for new homes able to accommodate grandparents as well as kids is also rising.
PRD Real Estate chief economist Diaswati Mardiasmo said while it had once been more the domain of migrant families, financial pressure was expanding the frequency of multi-generational living.
PRD Real Estate chief economist Dr Diaswati Mardiasmo has revealed a growing share of the Victorians embracing multi-generational living are doing so for financial reasons.
“The reason behind multi-generational living remains the same over time — housing affordability, cost of living, care giving — 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’,” Dr Mardiasmo said.
“In short, for many, multi-generational living is now no longer an option or preference, but a necessity.”
Housing affordability pressures, migration, and shrinking public housing availability are key factors in its rise, and by 2041 she believes a third of all households could be relying on multi-generational living.
For Tarneit’s Richard Nelson having three generations under one roof has been a chance to pass wisdom on from grandparents to grandchildren, to give back to the parents that raised him and to have half a cricket team on hand when they want to use the wicket they had built into their back yard.
Now the home hosts Richard, his wife Harriet, son Zion, daughter Elora, mother Shelha, and his father Nelson Pervaz — whose first name became his family’s surname under Pakistani tradition.
The Nelson family have enough members under the one roof for an easy game of backyard cricket whenever they want. Picture: Tony Gough.
Mr Nelson, who is Managing Director of the successful Car Sales Express dealership, said after arriving in Australian with $2500 in his pocket, being able to have a home all his loved ones could share was his version of the great Australian dream.
“I can see everything my parents are teaching the kids and their values being passed on to them,” he said.
“And I get to spend so much time with them (his parents).”
The family made sure their current home, built a few years ago, had two kitchens and two main living zones, as well as main bedrooms upstairs and downstairs, and a custom garage that suits a number of vehicles.
While they spend much of their day living together, they also have the chance to break out into separate spaces when needed.
However, Mr Nelson said he would consider adding a lift for his parents to be able to travel between floors more easily — and anything else that might make their lives more comfortable in the home.
For those considering it, he said having your parents live with you could be a way to help build your own future
“Having my parents by my side has meant an extra pair of eyes on my kids and that’s helped me to have the time to build my business,” he said.
Australia’s largest home builder and one of Victoria’s biggest, Metricon, has been watching the trend grow over the past decade — especially in inner suburban areas.
Metricon chief exectuve Brad Duggan has noted significant changes in demand for multi-generational homes. Picture: Richard Walker.
Chief executive Brad Duggan said the key drivers they had encountered were financial pressure and changes to family dynamics.
“This trend is reshaping the Australian housing landscape, with more families opting to live under one roof as adult children remain at home longer and grandparents move in to provide childcare support,” Mr Duggan said.
“As homeownership becomes increasingly expensive — fuelled by soaring land prices, housing affordability challenges, and a tight rental market — families are choosing to consolidate living arrangements to cut costs.”
Key changes to demand for homes that suit expanded family living arrangements include a 30 per cent increase in requests for bigger homes with multiple ensuites to bedrooms in some areas, often having a main bedroom upstairs and downstairs.
It is also leading to bigger kitchens, multiple living areas and floorplans that allow for separation within the home.
Mr Duggan added that they were also encountering a growing number of homes being bulldozed and replaced with bigger residences to accommodate families whose kids planned to stay there longer term after growing up in the original residence.
— additional reporting Nathan Mawby
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