Money expert’s one simple way you can save $16,000 a year during cost-of-living crisis – but would you dare?

Young Australians are being advised they can save almost $16,000 a year by moving back home with their parents and quitting sharehouse living.

Graham Cooke, Finder’s head of consumer research, said this was an effective way to boost savings during a cost-of-living crisis.

‘Reducing or eliminating accommodation costs – if you are in a position to do so – will significantly improve your cash flow and you will accrue savings much quicker,’ he said.

‘The faster you can grow your cash buffer the more resilient you will be to economic headwinds.’

But those hoping to save up for a mortgage deposit to buy an apartment may have to live with their parents for more than eight years.

Australia’s median rent was $601 a week or $31,252 a year in December, with this CoreLogic figure covering both capital cities and regional areas. 

But if someone now in a share house with one other person moved back home, Finder calculated they would save $300.50 a week or $15,626 a year.

Choosing a share house, over renting alone, would also save someone the same amount of money over the year.

‘Rents and mortgages have gone through the roof – they are the number-one source of financial stress in Australia and people can no longer cut costs elsewhere to get by,’ Mr Cooke said.

Australia’s rental crisis is getting worse with new SQM Research data released this week showing Australia had a national rental vacancy rate of just one per cent in March.

Capital city unit rents have climbed by 9.2 per cent during the past year to $628 a week.

Sydney apartments are even dearer, with rents climbing by 8.8 per cent to $710. 

Graham Cooke, Finder’s head of consumer research, said this was an effective way to boost savings during a cost of living crisis

The rental market remains tight with 498,270 migrants, on a net basis, moving to Australia in the year to February.

An influx of international students saw 105,460 foreigners arrive in February alone, marking the first time monthly permanent and long-term foreign arrivals had been in the six figures. 

Renters wanting to buy also face strong competition and those hoping to buy face having to give up their privacy and freedom.

Australia’s median unit price of $659,941 in March would require a 20 per cent mortgage deposit of $131,988 – or eight years and five months of living with your parents to save almost $16,000 a year.