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 that they can save almost $16,000 a year by moving back in with their parents and giving up living in shared housing.

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

“Reducing or eliminating housing costs – if you are able to do so – will significantly improve your cash flow and you will build savings much faster,” he said.

‘The faster you can grow your cash buffer, the better you will be able to withstand economic headwinds.’

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

The average rental price in Australia was $601 per week or $31,252 per year in December, with this CoreLogic figure covering both capital cities and regional areas.

But if someone who currently shares a home with one other person were to move back home, Finder calculated they would save $300.50 per week or $15,626 per year.

If you opt for a shared home, rather than renting alone, you could also save someone the same amount over the course of the year.

“Rents and mortgages have skyrocketed – they are the main source of financial stress in Australia and people can no longer cut costs elsewhere to make ends meet,” Cooke said.

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

Apartment rents in capital cities have risen 9.2 per cent in the past year to $628 per week.

Apartments in Sydney are even more expensive, with rents rising 8.8 per cent to $710.

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

The rental market remains tight, with a net 498,270 migrants 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 have reached the six figures.

Renters who want to buy also face stiff competition and those who want to buy have to give up their privacy and freedom.

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