Packed to the rafters

Multigenerational living gaining support as housing pressures and wealth divides reshape how Australians approach financial security

AMP research shows Australians are increasingly open to living with extended family under one roof to share costs, pool resources and manage financial pressures – a shift being driven most strongly by younger Australians and those without the buffer of a partner.

As housing unaffordability, rate increases and cost-of-living pressures bite, more than half of Australians (55%) say we should embrace multigenerational living – where extended families live together to share costs and support loved ones through financial challenges, and a model more common in some cultures around the world.

That finding speaks to a broader confidence challenge – as financial pressures mount on households. AMP’s Retirement Confidence Pulse¹ shows only around half of Australians feel financially confident about life after work, underlining that confidence is increasingly shaped not just by super balances, but by the broader pressures around housing, caring and household structure.

Younger Australians more open to multi-gen living

Support for multigenerational living is strongest among younger Australians, with 68% of 20–39-year-olds in favour – compared with fewer than two in five Australians aged 65 and over – pointing to a generational shift in expectations around independence, home ownership and how families support each other.

The data also suggests the strongest support comes from Australians who can find financial pressures hardest to absorb alone: 61% of single Australians support the model, compared with just over half of partnered Australians. Women are also more supportive than men (58% vs 52%).

The key findings:

• Over half of Australians support adopting multigenerational living with extended family, to pool resources
• 2 in 3 (68%) Australians aged 20–39 support it (vs less than 2 in 5 Australians aged 65+)
• 3 in 5 (61%) single Australians support it (vs half of partnered Australians)  
• Women are more likely than men to support it (58% vs 52%)
• 2 in 5 (38%) Australians aged 20-39 are relying on inheritance to get into the property market

Boomer wealth and housing unaffordability 

The changing view of younger generations reflects a broader generational wealth divide. AMP analysis² has previously found older households - particularly Baby Boomers - have benefited most from decades of strong asset price growth, especially in housing, while younger Australians have faced a much tougher path into homeownership, as affordability is now a major constraint to home ownership.

That divide has been reinforced by rising home prices and persistent housing supply constraints, which have lifted wealth for established owners while making housing less affordable for younger households. Against that backdrop, it is not surprising more Australians are becoming open to multigenerational living as a practical way to share costs, pool resources and build security.

Multicultural Australia

Openness to intergenerational living may also reflect adopted views from Australia’s growing multicultural society. Nearly one-third of Australians were born overseas (31.5%)³, and almost half have at least one parent born overseas (36.7% one parent; plus 11.5% both parents)⁴.

Australia’s diversity also shows up in daily life, with nearly one-quarter (23.7%)⁵ speaking a language other than English at home – meaning millions of households bring a wide mix of family living traditions into the mainstream, including those of some European and Asian cultures where multigenerational living is more common.

Ben Hillier, AMP’s Director of Retirement, commented:

“As housing pressures intensify and Australia becomes increasingly multicultural, younger Australians are rethinking what the ‘Australian dream’ looks like. For many, support is no longer just about the ‘Bank of Mum and Dad’ – it’s about the ‘House of Mum and Dad’; with extended families open to sharing housing, costs and care in more practical ways.

“This shift also tells us something important about confidence for retirement, which in Australia has long been tied to home ownership. Alongside super, Australians’ sense of financial security will increasingly be shaped by the household around them – how families live, what support they can provide one another, and how costs and care are shared.”

Three things for families to keep in mind: 

1. Start the conversation early: AMP research has highlighted that wealth and financial support can still be difficult topics for families to discuss openly. Starting the conversation early can help everyonebetter understand what support may be possible, and what is realistic.

2. Be clear about expectations: If multigenerational living is on the table, it helps to talk through how costs, responsibilities and day-to-day arrangements might work in practice. Being upfront early can help avoid tension later.

3. Think longer term: Shared living may help ease immediate cost-of-living pressure, but it can also be an opportunity to streng then longer-term stability. For some families, that could mean more breathing room, more flexibility and greater confidence about the future.

^{1 AMP Retirement Confidence Pulse 2025}

^{2 AMP Econosights, Diana Mousina, The Australian generational wealth divide, May 2024}

^{3 AustralianBureau of Statistics, Australia’s Population by Country of Birth, Jun 2024}

^{4 Australian Bureau of Statistics, Nearlyhalf of Australians have a parent born overseas, June 2022}

^{5 ABS 2021 Census QuickStats — Australia}