‘Boomerang kids’ moving back home due to COVID-19

THOUSANDS of Queenslanders have been forced to move back in with mum and dad after being financially hamstrung by the COVID -19 pandemic, a new survey reveals.

One in four households in the state have adult children living at home, and more than a third of them made the move because of the coronavirus, according to Finder.com.au, a comparison website.

People increasingly breaking their leases to move back home was part of the reason for a jump in rental listings in the wake of the lockdown.

Finder’s personal finance expert Kate Browne said the recent job losses and income cuts had left thousands of adult kids or ‘kidults’ (aged 21 and over) without enough money to pay the rent and bills.

“From young professionals who have lost their jobs, to expatriates returning from overseas, COVID-19 has had a negative financial impact on many Aussies,” Ms Browne said.

“Some have no choice but to move back in with mum and dad.”

But Ms Browne said that might not be the only reason young adults had decided to move back home.

“Others may have also moved back home to help their older parents during the lockdown,” she said.

“There are some very vulnerable people in the community, so having the option to move in with family and help out around the house is a good thing.”

It could have implications for parents who thought their kids had flown the coop though, Ms Browne said.

“Many adult kids are returning to their childhood bedrooms, setting up workstations in the dining room and asking, ‘what’s for dinner?’.

“While some parents will be delighted to have kids move back in, whether or not they can handle an increase in the energy, water and food bill remains to be seen.”

The Finder survey was undertaken in May and involved more than 1000 Australians aged 18 and above.

Realestate.com.au chief economist Nerida Conisbee said the good news was that rental listings had started to decline again.

“If we compare the first 20 days of

May to the same time last year, they are now down 12.9 per cent in Brisbane and 14.3 per cent in the rest of Queensland,” Ms Conisbee said.

“The increase in listings post COVID-19 was sharp and sudden. It was mainly driven by high levels of distress in the rental market. Renters were highly exposed to job loss (younger, more likely to be casual employees and more exposed to tourism, hospitality and education) and it is likely that many looked to move back home (particularly if they were students) or into share accommodation.

“The decline in listings … means that the decline in rental levels will start to moderate and that renters are in a better position than they were once the lockdown began.”