Australia sees rise in multigenerational households amid housing crunch

A shortage of new homes and soaring prices are making traditional homeownership difficult in Australia. The national target of 1.2 million new homes over five years is projected to fall short by about 262,000 dwellings by mid‑2029, while median house prices in Sydney now equal 16.7 times average annual earnings.

In this environment, multigenerational living is becoming more common. Twelve percent of Australians currently reside in a household that includes three or more generations, and 32 percent have done so in the past. Overall, 57 percent say they would welcome such an arrangement, with the figure rising to 71 percent among households where a language other than English is spoken at home.

Reasons cited include shared living costs, support for older relatives, stronger family ties, reduced loneliness, and childcare assistance. While 73 percent would rather have a smaller, private apartment than a larger shared home, many see the trade‑off as a practical response to the high cost of living and limited housing supply.