The Japanese are pretty candid when describing older children who outstay their welcome in the family home. They call them 'parasaito shinguru' which translates as parasite singles. But the even blunter acronym KIPPERS, 'kids in parents’ pockets eroding retirement savings,' is the prevailing expression in Australia.

Nearly 50 per cent of Australians aged 18 to 24 are living at the parental home for longer periods, according to the University of Melbourne’s Institute of Applied Economic and Social Research. New research reveals young adults today are under extremely different economic pressures than ever before.

Generation Y, also known as the 4.2 million Australians born between 1980 and 1994, are the most educated and technologically savvy of any generation preceding them. Yet these trendsetters are more inclined to delay their transition into adulthood in order to plan their futures and achieve their goals.

“On average, young people today leave home, marry, buy a house and have children at later ages than previous generations,” said Dr Gary Marks, author of the study.

The introduction of university HECS in 1987, as well as the modern requirement for further education in most job options means that Generation Y must remain in the family home for financial reasons, according to demographer Bernard Salt.

This prevailing norm is only part of the reason young adults are staying home in greater numbers than ever before. Not only have university fees soared, but the housing market, rental crisis and cost of living have risen so much that 20 year-old Belinda Torres says she can’t compete with it all on her own.

“I love university, but it can be very stressful at times juggling work and my studies,” said Torres, a communications student from Sydney.

“It’s hard when you’re trying to be an independent individual. If I didn’t live at home with mum and dad, I wouldn’t be able to afford my degree, let alone live.”

In a Residual Development Council survey, property experts predict only one in 14 members of Generation Y will ever be able to overcome surging house prices and land shortages to buy their own family home. While an ING Direct study found 55 per cent of Generation Y is worried about their ability to buy a home, 46 per cent of parents were happy to let the kids live at home longer if it meant they could save more money for a house deposit.

“Mum’s and dad’s are feeling a great deal of obligation to help their kids achieve their own great Australian dream,” said ING Direct Executive Mortgages Brett Morgan.

Sydney mother Robyn Lawson is a prime example of assisting her 26 year-old son. Chris has a Law degree, studies IT part-time, works part-time and has no desire to leave home.

“My husband and I love having Chris at home with us. He is building a granny flat in the backyard so that he can have his own place soon,” said Mrs. Lawson.

“When he’s working full time we are going to sell him our house, at a very reduced rate of course.”

Sydney, like the rest of Australia, has enjoyed 17 years of economic prosperity. While it has brought choice, social researcher Rebecca Huntley said economic growth doesn’t provide young people with financial security.

“Generation Y will actually be denied access to many of the choices normally associated with adulthood,” she wrote in her book The World According to Y.

“Permanent work, marriage, children and owning a home won’t come easy to this generation, making their transition into adulthood slow and difficult.”

Generation Y has lived through 11 years of the Howard government which has dramatically changed their lives. There have been 12 interest rate increases since 2002, along with WorkChoice changes bringing job uncertainty; areas seldom recognised as impacting on Generation Y.

John Howard previously reduced public debt by cutting back on education and hospital funding, while increasing HECS debts by 25 percent in 2005. What’s worse is the more crucial private debt, which threatens Australia’s growth in the long term.

“Students are graduating with massive debts that prevent them from saving, spending and generally contributing back to society and the economy,” said National President of the National Union of Students Angus McFarland.

“There is already evidence linking HECS debts to delayed home ownership, business investment and even increased tax evasion.”

Managing the Quarter Life auther Joanne Jowell says Generation Y is not only prone to anxiety and frustration, but experiencing a quarter-life crisis in their mid-twenties.

“The quarter life crisis is a new phenomenon, born of choice, opportunity and the idiosyncrasies of the modern world,” said Ms. Jowell.

“Our parents were not exposed to the sheer volume of prospects that we encounter today. Quarter-lifers are overwhelmed by choice and under immense pressure to perform.”

In a critic’s mind, young adults are ‘KIPPERS’ who have got a good thing going on at mum and dad’s crib. Perhaps more accurately, most of Generation Y is left feeling discouraged by the high cost of housing affordability in capital cities.

“It’s a weekly struggle to pay both rent and my car off. Considering an average Sydney house is half a million, home-ownership is a pipe dream for most young people,” said Ms. Morris.

“Unless we have parental assistance, partners or a sudden inheritance windfall, of course.”


Image courtesy of Decor8
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