The rising house prices in Australia are making it hard for the younger generation to live independently of their parents. According to news.com.au, a typical house now costs 7.2 times the annual household income. This is a steep increase, considering that it was only 4.2 times the annual income 15 years ago.
Cubby Houses: An Acceptable Solution?
The financial services company CoreLogic recently conducted a survey of over 2,000 Australians. The study found that one-fifth of them are still living in their parents’ home and expect to stay there until at least age 30.
To establish independent living arrangements with their children despite living in the same property, some parents are utilising adult cubby houses. While regular cubby houses are for child’s play, there are more elaborate kinds that can be used as a dwelling place.
The phenomenon — coined the ‘Cubby House Syndrome’ — refers to any space, such as a garage or rumpus room, that parents can turn into a semi-dependent dwelling for their children. It is a compromise for young people who are unable to follow the rite of passage of buying their own home at the moment.
Government Looking for Different Solutions
To ease the burden of ever-increasing house prices, the government wants to encourage older homeowners to downsize their homes. This is to free up the stock of larger homes for younger and bigger families. It will allow a person 65 years old to experience a favourable tax treatment from the proceeds of selling their house.
The government will also fine foreign investors of up to $5,000 for leaving their houses empty for more than six months a year. It will also prohibit property developers from selling over half of new developments to foreigners.
Due to the rising house prices, Millennials are struggling to live independently. Adult cubby houses are now seen as a viable compromise for those who need independence but cannot yet afford to live away from their parents. The government is likewise looking for an alternative solution to this rising housing problem.