Housing affordability is reshaping how Australians live, and one of the clearest signs of that is the rise of multigenerational households.
What was once seen as an alternative lifestyle is quickly becoming a practical solution for many families.
Research from AMP shows that 55% of Australians believe multigenerational living should be embraced. That’s a significant shift in mindset, particularly in a country where independence and home ownership have long been central to the housing narrative.
Younger Australians are leading this change. Among those aged 20 to 39, support rises to 68%. This reflects the reality they are facing. High entry prices, rising rents and cost-of-living pressures are forcing a rethink of traditional pathways into property.
There is also a financial dimension that cannot be ignored. Nearly 40% of younger Australians are relying on a future inheritance to enter the market. That highlights the growing gap between income growth and property prices.
Ben Hillier from AMP describes this shift well. The ‘Bank of Mum and Dad’ is evolving into the ‘House of Mum and Dad’. Families are not just helping financially, they are sharing space, costs and responsibilities in a more integrated way.
The data supports this trend. According to the 2021 Census, 335,000 households now include three or more generations living together. That represents a 22% increase since 2016, and the trajectory suggests it will continue.
This has real implications for the property market. Demand is shifting towards homes that can accommodate multiple generations. That includes larger floorplans, dual living configurations and properties with flexible layouts.
For investors, this creates an opportunity to think differently about what makes a property desirable. It’s no longer just about location and size. It’s about how the space can be used and adapted over time.
There is also a cultural shift happening alongside the financial one. Multigenerational living is becoming more accepted, even preferred in some cases. It offers benefits beyond cost savings, including shared childcare, support for ageing parents and stronger family connections.
In markets like Brisbane, where affordability is still relatively accessible compared to Sydney and Melbourne, this trend is particularly relevant. Buyers are looking for value, but they are also looking for flexibility.
Developers and planners are starting to respond, but there is still a gap between supply and demand. That gap presents an opportunity for buyers who can identify properties that meet this evolving need.
The broader takeaway is that the definition of housing is changing. It’s no longer just about individual ownership or a single household. It’s about adaptability, shared living and making property work in a way that reflects modern realities.
For buyers and investors, understanding this shift is critical. It’s not just a social trend. It’s a market driver that will influence demand for years to come.
