Is multi-generational living for you?

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Is multi-generational living for you?

Updated 17/05/2023

Approximately one in five Aussies are now living in a multi-generational home, could you do it too?

Time to read : 4 Minutes

There’s no escaping the media storm around sky-high inflation and consecutive interest-rate rises – it’s no wonder so many Australians are concerned about what the future holds.

But on top of worries about rent prices and increasing mortgage repayments, it seems that everything in life is getting more expensive.

🧐 Add in the surge in childcare prices – a whopping 6.5% year-on-year increase across metro cities – and it has understandably made some Aussies think twice about their living situation.

What you need to know

So while it might be a taboo subject, there’s a growing collective, dubbed the Boomerang Generation, who are returning home or moving in with their in-laws in order to manage the cost of living.

👪 Moving in with family shouldn’t be a snap decision – sit down and agree on the ground rules before uprooting your life.

💰Failing to pay rent could cause resentment in your loved ones. You can still save big even if you are paying a little bit of rent.

👶 Some Aussies are slashing childcare costs from their budgets by having their parents look after their kids at home.

✍️ Don’t rely on a handshake agreement – formalise your multi-generational living arrangement, from costs to disciplining the kids, in writing.

People who actually did it

Here’s what some people who’ve moved back in with their family have to say about multi-generational living:

Lashea:

“We have weekly meetings to discuss the running of the house, which have been super helpful. I feel very fortunate to have parents who are willing to support me during tough times, because I know not everybody has the option to live with their parents."

Ruby:

“I understand [my parents] won’t be around for ever. I’ll cherish these moments. It made me realise how lucky I am, especially at Christmas, when people were talking about avoiding relatives. We’re very close, and we share the same worldview, so it makes existing in the same space a lot easier.”

Sheridan:

“I was able to save enough money to pay off all those debts that I had, to finance a car and then ultimately to move out."

Top considerations when moving in with family

Multi-generational living is nothing new.

In fact, it’s only been the past 150 or so years that living as individuals has become the norm – during the mid-19th century the vast majority (70%) of parents aged 65 or older lived with their adult children, while by the end of the 20th century that figure had dropped to just 15%.

🏠 No matter what your reason for returning to the family nest, it’s important to be upfront about a few things. After all, you don’t want to compound your financial stresses with family issues. Before moving in with your parents, in-laws or other extended family, make sure you:

Negotiate how the bills will be portioned up.
Agree to house rules and make personal requests for privacy.
Clarify how the kids will be raised. For example, if you don’t want your parents to discipline your children, make that clear from the outset.

Be aware: Don’t fall into the trap of living ‘rent-free’. Less than half (41%) of parents charge their adult children any form of rent because they feel bad for their situation.

🤓However, research shows that even if you pay rent you can end up saving thousands every year because of the significantly reduced costs of living in a shared home.

Benefits of shared living arrangements

Once you’ve settled on the specifics of your new living arrangement, it’s a good idea to get everything in writing.

📑 It might seem awkward or unnecessary, but formalising your situation – rather than relying on a handshake agreement – can save you time, money and emotional distress down the track.

🫶 Now that that’s sorted, you’ve got plenty of benefits to look forward to:

Closer, more supportive relationships with your family and loved ones.
Opportunities to save faster for a more secure future.
Support with child-rearing, and a stronger relationship between your kids and their grandparents/other extended family.
The ability to return to your studies or upskill for your career.
Emotional benefits for your older family members, who may be at risk of empty nest syndrome.