MORE young Victorians are living at home with their parents than in any other state, new research has shown.
A lack of affordable housing is being blamed for locking Generation Y out of the housing market.
The Australian Bureau of Statistics revealed yesterday that Victoria had the highest proportion of 25 to 29 year olds living with their parents, with almost 23 per cent in that age group still at home.
NSW has the second highest rate at 20 per cent.
The proportion of Generation Ys, those born between 1976 and 1991 (aged 17 to 32), who live at home is on the rise nationally, hitting more than 50 per cent in 2006.
Housing Industry Association acting Victorian executive officer Robert Harding said it was almost impossible for young people to buy a house.
"If you're in your 20s, on a low to middle income, and looking to buy a home, it's becoming virtually impossible," Mr Harding said.
"Gen Ys still living at home with mum and dad may be trying to save a deposit or may be there because they can't afford the soaring cost of rent."
Ballarat's Sarah Grano, 25, is living at home with her mum and two younger sisters to save money to buy a house and travel.
"I considered renting but why pay rent when I can pay board inclusive," Ms Grano said.
"It's easier to save.
"What I can save in six months would take 18 months if I was renting."
The full-time worker said she had a good relationship with her mum and helped out with meals and housework.
"It's good to know you have a place to go to and you don't have to worry about board and who you live with," she said.
City of Ballarat youth services manager Cassie Lindsey said affordable housing and rental availability made it difficult for young people to move out of home, particularly part-time workers.
"We are seeing more people stay in Ballarat at home with their parents because it's convenient," Ms Lindsey said.
"Employment opportunities meet their needs and they can access transport.
"A lot of young people live at home so they can save enough money to travel."
The HIA believes 5000 homes above current production each year need to be built in Victoria to increase supply in the housing market.