Adult children could save upwards of $27,000 a year by returning to the coop after moving out of home, according to new research.
The Compare the Market survey found older Australians and multi-generational living arrangements continue to be a major defence against rising costs.
Rental prices have accelerated at three times the rate of wages in the past five years, with prices up 43.9 per cent nationally to September 2025, according to February Cotality research. Nationally, the median weekly rental price is now $681.
But many parents are welcoming ‘boomerang’ adult kids back home and offering a lifeline through cheaper board.
Saving a deposit
Compare the Market asked Australians what a reasonable weekly board amount could look like in 2026, which averaged $143.59 nationally ($7,466.68 annually). Compared with the national median weekly rent of $681 ($35,412 annually), the difference is $537.41 a week, or $27,945.32 a year.
It’s the kind of financial assistance that could help many get onto the property ladder.
When you’re looking at an annual saving of close to $28,000, that’s a massive leg up to bolster savings, gather a house deposit or line your ducks up in a row for your next big purchase.
Getting to that regular 20 per cent deposit amount is still going to be a bit of a stretch, even if living at home and paying board, but the Australian Government’s 5% Deposit Scheme could help people get there quicker.
The median national home value is now $901,257, meaning you’d require a 5% deposit of $45,062.85. Assuming you were able to save around $538 a week, you’d have enough for a deposit within about 84 weeks, which is just over a year and a half of living back home.
No matter where in the nation you are, you’d be looking at less than two years to save a 5% deposit for a median house price.
Beats paying rent
Around a third of Australians surveyed by Compare the Market (34 per cent) say they’ve been forced to move back in with their parents at least once to save money on rent, with 14 per cent admitting they’ve made multiple returns home.
Between interest rates rising, health insurance price increases and high costs continuing to hit us from every angle, many everyday Aussies are struggling to stay afloat. Having a roof over your head is a necessity, but when those costs continue to blow out at astronomical rates on top of all the other price hikes we’re facing, it’s no wonder we’re seeing so many people returning home.
Particularly for young Australians, who are juggling studying, raising families or trying to squirrel enough money away for their own house deposit, it’s getting tough out there. But the trend we’re seeing is that many parents are happy to lend a helping hand and welcome their adult kids home, even if it means charging them board at a fraction of the typical rental costs.
Making it work
While younger generations benefit, the Bank of Mum and Dad also receive their own form of financial support to cover groceries, utilities and other household costs. So, it can be a win-win in some situations.
The CTM team reported they found lots of cases of people moving back home with their own children, with multi-generational support offering financial stability amid these uncertain times.
But ongoing communication was key in ensuring these types of living and financial situations benefit all involved.
My advice: Treat living back at home like a mini flat share, with a contract, budget and a finish line.
While there can be great benefits, it doesn’t take long for these financial leg-up scenarios to turn into living nightmares, so keep the communication clear at all times.
It’s also a good idea for all parties involved to sign an agreement or contract regarding the price and frequency of board, who will cover food and utilities, chores, parking situations and more.
Set out your expectations early on so there are no nasty surprises down the road. If you treat board like a handshake deal, you’ll end up with crossed wires. Treat it like a mini-lease with a savings plan, and everyone wins.
Another thing that can help is a regular review cycle, to discuss what’s working, what’s not and ensure everyone is happy. Little adjustments early on may prevent big blow-ups later.
