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Generation Rent: Why Young People Are Staying Home Longer Than Ever

  • Nishadil
  • September 26, 2025
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  • 3 minutes read
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Generation Rent: Why Young People Are Staying Home Longer Than Ever

The dream of independence, a cherished rite of passage for generations, is rapidly becoming a distant fantasy for many young Australians. A groundbreaking new study from the ARC Centre of Excellence for Automated Decision-Making and Society (ADM+S) at RMIT University paints a stark picture: exorbitant rent prices and a severe housing shortage are forcing young people to stay in their family homes much longer than ever before, fundamentally reshaping their transition to adulthood.

This isn't about choice; it's about necessity.

The comprehensive research, which focused intently on the 18-34 age group, reveals a systemic crisis where the cost of living has far outpaced wage growth, leaving an entire generation struggling desperately to find a foothold in the notoriously unforgiving rental market. For countless young individuals, the option to leave the nest and embark on their independent journey simply doesn't exist.

The numbers themselves are truly alarming and speak volumes about the depth of this crisis.

Over the past year alone, median rents in Australia's bustling capital cities have skyrocketed by an eye-watering 16.1%, representing an unprecedented surge. Compounding this dramatic increase, rental vacancies have plummeted to a record low of just 1%. This perfect storm of skyrocketing costs and vanishing availability means that for every single property available, there's a fierce, often unwinnable, battle among desperate and highly motivated renters.

It has become a quintessential landlord's market, and young people, with their typically lower incomes and fewer assets, are consistently bearing the devastating brunt of it.

Australia now holds the unenviable and concerning title of having the highest proportion of young adults aged 25-34 living with their parents among advanced economies globally.

This striking figure has more than doubled since 1981, illustrating a dramatic, sustained, and concerning shift in societal norms and economic realities. What was once often considered a temporary arrangement or a brief stopgap is now increasingly becoming an extended, and often entirely involuntary, norm for a significant segment of the population.

The multifaceted factors driving this acute crisis are deeply entrenched and extend far beyond simple economics.

Beyond the immediate shock of high rents, we're witnessing the long-term, cumulative effects of stagnant wages that have failed to keep pace with inflation, the pervasive casualization of the workforce which offers little security, and a severe, chronic lack of investment in social and truly affordable housing options.

Crucially, this isn't a problem of individual failings, a supposed lack of ambition, or laziness among young people; it's a profoundly structural issue demanding systemic, comprehensive solutions.

The far-reaching consequences of this situation extend significantly beyond merely delayed independence.

Prolonged periods of living at home invariably impact mental health, placing considerable strain on family relationships and often tragically delaying critical life milestones such as forming partnerships, starting families, buying property, and accumulating essential personal wealth. It creates a profound domino effect that can reverberate through an individual's entire life trajectory, severely hindering their ability to build a secure, prosperous future and contribute fully and meaningfully to society.

This groundbreaking study serves as a critical and urgent wake-up call to policymakers and the broader community.

It underscores the immediate and pressing need for comprehensive, robust policy interventions—including strategies to significantly increase housing supply across all segments, improve existing rental protections for tenants, and actively explore viable options like rent controls—to ensure that the next generation isn't permanently locked out of the fundamental dream of independent living.

Until then, 'Generation Rent' remains firmly rooted in their childhood bedrooms, navigating an adulthood that looks starkly and heartbreakingly different from what their predecessors so readily experienced.

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Disclaimer: This article was generated in part using artificial intelligence and may contain errors or omissions. The content is provided for informational purposes only and does not constitute professional advice. We makes no representations or warranties regarding its accuracy, completeness, or reliability. Readers are advised to verify the information independently before relying on