Why are millennials staying at home longer

With WA’s house prices being on a downwards trajectory for some time now, buying your first home has never been so affordable.

So are people who are choosing to stay at home longer being savvy or just lazy?

It can come down to a few factors; from lending standards and competition within the rental market to the cost of living and all the saving advantages that come with living with your parents. But, over the last 10 years the trend in teens and young adults staying at home longer than usual has become a social norm.

So what’s causing this new trend? Is it just a millennial quirk? Or is it a reflection of the society we live in? Here are five reasons why millennials are staying at home longer.

1. Saving money

One of the biggest perks of living with your parents is the ability to save money. Whether you are working or paying board to your parents, you will still inevitably find saving on bills, food and rent is a lot easier than if you were living out of home.

A lot of millennials also stay at home whilst they are saving for a deposit for their first home. This is a very logical solution especially for those who want to rule out renting as an option. If you have a steady income and are at the stage when you can afford a house, then stay at home for as long as you can until you have enough for a deposit.

If you are living out of home, it is generally harder to save up for things like holidays or a car because you have bills and rent to pay. Staying at home gives you more freedom to be able to travel and do the things you love while you are young and have less responsibilities.

2. Can’t find a job

With Western Australia’s unemployment rate reaching an all-time high in 2018 of 6.9 per cent, it is no wonder people are having to stay at home longer with their parents. A lot of millennials are actually living at home because they have no choice, when in fact they really do want to leave the nest.

Whether you have done your university degree or not, finding a job is always a challenge and represents a wider issue within our state’s economy.

3. Cost of living out of home

The cost of living is becoming more and more expensive, and it is a very big deterrent for people considering moving out. Whether you are planning to rent or buy, the cost of living out of home far exceeds that of living with your parents – so why move out? If you can afford to live out of home, then there are many attractive benefits such as more independence, freedom and learning responsibility and skills that will set you up for life. There is also the traditional stigma that staying at home with your parents as an adult is considered 'lazy' and is something to be embarrassed by.

4. Bad credit rating

It is very easy to accrue debt when you have less responsibilities to pay for, and it can creep up on you before you know it. Once you’re an adult and earning an income, getting a credit card or loan becomes simple and very dangerous. A lot of millennials take advantage of this and when it comes to moving out or buying a house, there is a mountain of debt that can hold you back. This is the reason why a lot of adults move back in to their family home after renting for some time.

To buy a house, you need a good credit rating, especially now that the banks are tightening down on lending standards and are saying no more often. Living out of home with debt looming over you can feel like you’re drowning, so it is important to stay on top of this and think about your future.

5. Property market conditions

It is hard to predict when the right time is to move out, whether you want to buy or rent. The WA property market is very favourable for first home buyers right now, in fact Perth is the most affordable capital city in the entire country, which is great news if you’re eager to leave the nest and buy your own house.

In the rental market, if you were looking to move out now, you would be facing some strong competition amongst tenants. Listings for rent are low and home opens are getting busier and busier with a large amount of applications – people are even offering more than the asking price!

While it can be difficult to know when the time is right to make your first move, the benefits to owning a property are immeasurable and buying your first home should be seen as a huge accomplishment.

To begin your journey to home ownership, speak to a REIWA agent and start looking at properties for sale in Perth.