Younger Australians drive support for extended families

Binaya Dahal

Journalist

25 March 2026

More than two in three Australians aged 20 to 39 now support multigenerational living, as housing unaffordability, rate increases and cost-of-living pressure mounts financial challenges, according to the new research from AMP. 

The appeal of living in extended families was also sharpest among those carrying the heaviest financial load alone, with 61% of single Australians backing the model compared to just over half of partnered Australians.

AMP’s Director of Retirement, Ben Hillier, said the support for younger generation is no longer just about the ‘Bank of Mum and Dad’ — it’s about the ‘House of Mum and Dad’.

“This shift also tells us something important about confidence for retirement, which in Australia has long been tied to home ownership,” Hillier said.

“Alongside super, Australians’ sense of financial security will increasingly be shaped by the household around them – how families live, what support they can provide one another, and how costs and care are shared.”

The report further noted that openness to intergenerational living may also reflects the adopted views from Australia’s growing multicultural society.

“Nearly one-third of Australians were born overseas (31.5%), and almost half have at least one parent born overseas (36.7% one parent; plus 11.5% both parents),” the report stated.

“Millions of households bring a wide mix of family living traditions into the mainstream, including those of some European and Asian cultures where multigenerational living is more common.”

The research surveying 2,000 Australians, however, revealed a striking generational difference on the issue with only two in five Australians aged 65 and over sharing similar view.

AMP’s report stated the difference was due to Baby Boomers being able to accumulate substantial wealth through decades of rising asset prices, especially in housing, while younger Australians have faced a much tougher path into home ownership.