PHOTO: For every $100k increase in house prices, the possibility of a first-home buyer scoring a house decreases. Picture: Julian Andrews.
The Great Australian Dream: Is it Fading Away for Millennials and Gen Z?
New Research Reveals the Optimal Age for Homeownership in Australia
Hopes of securing the Great Australian Dream could be over before you know it, after new research unveiled the best age to buy. Trying to buy a home is hard enough in Australia. Now, it appears, there’s a time limit too.
Bleak Homeownership Picture for Millennials and Gen Z
A new report by the Australian Housing and Urban Research Institute (AHURI) has painted a bleak picture for Millennials and Generation Z trying to buy a piece of the country’s property scene, as well as an eye-opening finding for the bank of mum and dad.
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Decline in Homeownership Rates among Young Australians
According to the latest census data, 66 per cent of Australian households own their home either with or without a mortgage, while 31 per cent of the nation rent their home. However, research by the AHURI has found home ownership rates for 30-year-olds have plummeted from a high of 65 per cent for those born in the 1950s to 45 per cent for those born in the 1980s. A number of social, demographic, and economic factors have influenced this, with co-author of the report and University of Sydney Associate Professor Stephen Whelan arguing this delay is not necessarily a bad thing.
Reasons behind the Delay in Homeownership
“We know, for example, younger generations are getting more education, delaying partnering and fertility, so there’s good reasons why they might delay entry and homeownership,” he told news.com.au.
A Grim Outlook for the “Great Australian Dream”
However, when the professor and his team started to compare how home ownership rates differed as the younger and older generations aged, the findings were more alarming.
Homeownership Catch-Up: Incomplete for Millennials
According to the report, Millennials who experience lower levels of homeownership between the ages of 30 to 34 do manage to catch up to their boomer counterparts over time; however, that catch-up “remains incomplete.” “There’s a group of individuals from the younger generation who it appears are unlikely to ever get into homeownership,” Prof Whelan said. In layman’s terms, the study found those who don’t manage to purchase a home by their early 30s have a slimmer chance of the “Great Australian Dream” later on in life.
Escalating House Prices: An Obstacle for Prospective Buyers
In another blow, it also found that for every $100,000 increase in house prices, prospective buyers are three per cent less likely to purchase a piece of real estate.
SOURCE: NEWS.COM.AU