Thirty-six per cent of 20 to 29 year olds in Australia still reside in the parental home, according to latest figures from Melbourne-based marketing intelligence agency Quantum.
Often referred to as `KIPPERS' (Kids In Parents' Pockets Eroding Retirement Savings) by social analysts, the adult children of the baby boom generation are more frequently opting to live with parents, their independence being eschewed in favour of subsidised rent, home-cooked meals and a free laundry service.
The rising costs of housing and further education, together with a reduction in state support, have previously been identified as factors making young people stay at home for longer.
However, Quantum analyst David Chalke believes that escalating house prices are not to blame for preventing generation Y from taking their first step onto the property ladder.
"The house price argument is as much an excuse as a reason - many of them could afford to buy a one-bedroom apartment...it's really a combination of convenience, not wanting to commit to anything, and compliant parents," Mr Chalke said.
According to the Australian Bureau of Statistics, only 21 per cent of people in their 20s lived with their parents in 1976, with this figure jumping to 30 per cent in 2001.
This trend is not specific to Australia, with research conducted by financial services group Prudential highlighting that in the UK approximately 6.8 million over-18s live with their parents, less than half pay rent, and many are given additional cash to spend each week.
Angus MacIver, director of research at Prudential, said that the findings "may come as a rude shock to parents who expect their kids to be out the door when they turn 18 - these days, parents may be stuck with them for much longer".
"While this may not be a problem in itself, the real worry is how much these kids cost - and the extent to which they eat into parents' retirement savings," said Mr MacIver.
"Whether our kids leave home at 18, 20 or 30 years of age, families need to plan ahead for every eventuality. Not only do they need to plan to help their children, they also need to balance that with the need to plan their own retirement," he said.
"Kicking-off a savings scheme or pension as early as possible for their kids is an excellent start."
