What Aussies Are Doing To Cope With The Cost-of-living Crisis
Limiting spending, refinancing loans, moving back home with mum and dad and working a side hustle are popular options being adopted today
3 min
Mortgage holders are limiting household spending and refinancing their loans, while a rising number of young Australians are moving back home with their parents. These are some of the ways in which people are dealing with today’s cost-of-living crisis, which has been caused by the highest inflation rate in two decades along with rising interest rates and rents, according to research by Finder.
Three in four Australians surveyed in September said they were somewhat or extremely stressed about their financial situation. This includes 84% of mortgage holders, up from 76% in September 2021. Finder says almost $15,000 in extra interest costs have been added to the annual repayments of an average Australian home loan. And that was before the Reserve Bank of Australia raised the official cash rate again this week. The RBA raised rates by 25 basis points to 4.35%. That was the 13th increase since May 2022 and takes the cash rate to its highest level since 2011.
The research cites data from the Australian Bureau of Statistics showing the total monthly value of refinanced home loans peaked at $22 billion in June. Finder says more than 70% of refinancing borrowers were going to a new lender rather than renegotiating with the existing one. However, the savings were fairly small. On average, refinancers went from a variable rate of 5.01% to 4.78%.
Graham Cooke, Finder’s Head of Consumer Research, said “the willingness of homeowners to refinance for even marginal gains underscores the pervasive cost-of-living crisis, reflecting a desperate search for any fiscal relief.” He added that millennial homeowners were struggling the most today. “This could be a sign that they jumped in when rates were at record lows and were unprepared for an environment where rates and repayments increased.”
Finder says young renters are increasingly moving back in with their parents to escape rising rents or to save to buy a home. Unaffordable rents prompted 30% to move back home. A further 30% did so to save money for a home deposit, while 14% said the loss of a job forced a change in living arrangements. Mr Cooke said interest rate rises were actually having a higher impact on renters, given landlords typically pass on higher costs to tenants through rent increases.
Cutting discretionary spending is another method of coping with rising costs. The Finder research shows 45% of Australians have cut back on dining out or ordering home delivery, 32% are shopping around for better prices, 23% have reduced beauty and self-care treatments, and 19% have cancelled a holiday. A small proportion (3%) have moved their child to a different school with lower fees.
Refinancing advice
Mr Cooke said it was important not to rush a refinancing decision. “There is a significant gap in rates offered by different lenders for comparable loan products. The best thing you can do is take the time to review and compare your home loan options to ensure you’re getting the most competitive rate. It’s never too late to find a better home loan deal.”
Advice if you’re moving back home
Mr Cooke said there was no point ‘returning to the nest’ without changing your spending habits. “Prioritising a budget is critical. Start cutting out non-essentials and look for ways you can save money. Working out all your expenses to the smallest detail will give you an idea of how much capacity you have to save.”
Tips for cutting spending
Finder says shopping around can help reduce non-discretionary spending as well. Finder recommends that consumers consider switching energy providers and insurers, and use a high-interest account for savings. RateCity recently reported that nine financial institutions on its panel are now offering savings account interest rates that are above inflation at 5.5% or more.
Take up a side hustle
Finder research also shows 35% of Australians are earning extra income through side hustle jobs like dog walking, mystery shopping, tutoring, freelancing and ride-share driving. Popular non-employed side hustles include recycling cans and bottles, making and selling goods, selling pre-owned goods and renting out a spare room or garage.
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A landmark Watsons Bay residence formerly owned by businessman Mark Bouris has returned to the market, bringing one of the harbourside village’s most distinctive homes back into play.
The five-bedroom property at 23 Robertson Place occupies 654 square metres opposite Robertson Park, within footsteps of Watsons Bay Beach, the ferry wharf and the celebrated restaurants lining the foreshore.
Its position places the home at the centre of one of Sydney’s most recognisable harbour villages, yet its substantial proportions, private outdoor areas and garaging give it a degree of separation rarely found so close to the waterfront.
The residence was previously owned by Bouris, the founder of Wizard Home Loans and chairman of Yellow Brick Road. Property records show it last changed hands in November 2013 for $7 million, having sold for $890,000 in 1995.
That 2013 transaction was handled by prestige agent Bill Malouf through Highland Double Bay. Bouris was the vendor when the home last sold.
Architect Malcolm Sholl designed the contemporary residence around a fluid connection between its interiors and outdoor entertaining areas. Extensive glazing draws natural light into the principal rooms, while district views take in the Sydney Harbour Bridge.
Travertine flooring extends through the principal living areas and out towards the terraces, reinforcing the relationship between the home and its coastal setting.
At the centre of the residence is a marble kitchen equipped with Gaggenau gas appliances and an integrated Miele coffee machine. It connects to expansive open-plan living and dining areas designed for both family life and large-scale entertaining.
Five double bedrooms are accompanied by three bathrooms and a guest powder room. Informal living spaces include a home cinema.
Outside, there’s a 23-metre lap pool and an alfresco entertainer’s terrace. Internal access from the garage and accommodation for four cars are especially valuable in the tightly held village location.
The address also carries an unusual fragment of local architectural history. Woollahra planning material identifies portions of an early Victorian cottage dating from about 1839 within the contemporary three-storey residence, placing the property within the wider Watsons Bay heritage conservation area.
The home made headlines for another reason in January 2025, when a Ferrari left the road and struck the property. Two occupants of the vehicle were taken to hospital following the incident.
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