25yo reveals grim ‘out of budget’ trend

With more than three million likes on TikTok and 70,000 followers on Instagram, you might think Ella Victoria has a lucrative career.

But the influencer has revealed that even she is moving back in with her family for cost reasons.

If we needed any further proof that housing has become unaffordable, it’s undoubtedly a successful influencer moving in with her in-laws to take a financial break.

According to Anthony Malouf, economist at Jarden, rents have risen by 30 percent since 2019, and research by comparison website Finder has shown that the trend of young people moving back in with their parents is increasing.

A 2023 survey found that 13 percent of Australians, or 2.6 million people, have moved back into their parents’ home or had an adult child move in with them in the past 12 months.

The study also revealed the financial disparity between those who live at home and those who rent, which over a five-year period adds up to an alarming $137,802.

“More and more Australians are moving back in with their parents as they struggle to cope with rising expenses,” Sarah Megginson, financial expert at Finder, told news.com.au.

“Interest rates have risen and cost of living pressures are coming from all sides, making it difficult for many to make ends meet financially.”

Mrs Victoria, 25, is one of these young people.

She lives with her fiancé in Sydney and paid $650 a week for a two-bedroom apartment.

However, when their lease expired, the couple faced a $100 weekly rent increase and decided to move in with their parents.

The reasons for this are the usual ones: you could pay more rent in an emergency, but you want to make ends meet financially.

“My fiancé and I are getting married next year and we want to save as much as we can for the wedding and our future,” she told news.com.au.

The couple had lived in their rental apartment for three years and wanted a “change” when the lease expired, but reality quickly caught up with them.

“When we looked at the rental market, everything was way over our budget,” she told news.com.au.

Mrs. Victoria is in a luckier position than most.

They have already managed to purchase a property as an investment, but found that even with that property they cannot afford to rent or build the house they want.

“We are building a duplex as an investment. If we were to stay in rented accommodation, we would have to pay the interest on the construction, the rent and the wedding installments at the same time, which would be a big expense,” she explained.

The plan is to move in with her partner’s family for six or twelve months so as not to spend so much on accommodation.

“Once our investment property is built, we will reassess our situation. Our goal is to use the equity from the investment property to buy another apartment,” she said.

The young Australian is aware that she is in a “privileged position” because she can move in with her family. But although being an influencer sounds glamorous, her work is ultimately extremely precarious and she cannot take big financial risks.

“Being an influencer is definitely a great position to be in, but due to the nature of the work, payments can be quite irregular. I find that being self-employed has made me more financially savvy in some ways as I’m always thinking about how I can future-proof myself as work isn’t guaranteed,” she said.

Ms Victoria said there was no stigma attached to moving in with her partner’s parents as it was normal for Generation Z.

“I think people understand the pressures of cost of living and are more willing to move these days,” she said.

However, just because it’s normal doesn’t mean it’s talked about. People are more likely to share their financial successes online, not the reality of their quest to get ahead.

“But I feel like it’s not that normal and not talked about that much,” she said.

Read related topics:Melbourne


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