Young adults ‘just trying to get by’ amid Australia’s rising living costs
A new report from the University of Melbourne’s Youth Research Collective reveals that young adults in their early 30s are facing increasing financial strain due to the cost-of-living crisis, with many feeling stuck and unable to plan for the future.
The research draws on longitudinal survey data collected from more than 400 participants in the Life Patterns study, comparing responses from 2022 and 2024. It shows a marked increase in the number of participants reporting difficulties in meeting everyday expenses across all main expense categories compared to 2022, including entertainment expenses, rent or mortgage payments, household bills, food, health care, study costs, and childcare costs.
Among these categories, paying for ‘entertainment expenses’ and ‘rent/mortgage payments’ were the two categories which have seen the most significant increase.
The research also revealed disparities in how different groups are affected. It shows that women were more likely than men to experience difficulty paying for essential expenses, particularly health costs (15%) and food (10%). Those living outside capital cities and people without university qualifications also reported more financial stress.
While some participants described themselves as financially stable, most reported growing pressure to manage costs and a sense that their lives were on hold. This finding challenges assumptions about financial security among Australia’s middle class.
The study’s authors argue that the inability to imagine a secure or hopeful future, a concept they refer to as “stuckedness”, is taking a toll on participants’ wellbeing and sense of direction.
With cost-of-living pressures shaping national debates on housing, immigration, and taxation in the lead-up to the 2025 federal election, the researchers hope the report will add weight to calls for policy responses that reflect the complexity of young adults’ experiences.
The Life Patterns program is a flagship longitudinal study led by the Faculty of Education, tracking the lives of Australians as they move from school into adulthood. The current report focuses on a third cohort recruited in 2022 and 2023, providing fresh insight into how Gen Z is navigating the changing economic landscape.
The Life Patterns study is supported by the Australian Research Council and the University of Melbourne. More information can be found at education.unimelb.edu.au/life-patterns.