17 October 2019
Home ownership is becoming increasingly difficult for all Australians – but there’s one group that is being locked out of the market almost completely – Millennials.
Corelogic’s new Perceptions of Housing Affordability report shines a light on the grim outlook for 18-34 years old’s in Australia’s property market.
And while, a Millennial owning their own home is looking more like a pipe dream than the Australian dream – the survey found it is Millennials who are most passionate about home ownership, when compared to respondents in Generation X and the Baby Boomer age bracket.
Where do Millennials fit into the bigger picture?
Only 30% of Millennials own their own property, compared to 54% of Gen Xers and 68% of Baby Boomers.
90% of Millennials are concerned about being able to afford a property, Gen Xers are also fearful at 86%, while 64% of Baby Boomers say they are concerned.
Both Millennials and Generation X find the biggest obstacle to buying a home is saving for a deposit – while Baby Boomers are more worried about stamp duty.
11 – the number of years it takes the average household to save for a house deposit in Sydney
805,424 – the median dwelling price in Sydney as of September 2019
32,025 – the cost of stamp duty on the median Sydney dwelling
30 – the percent of Millennials who own their own property
30 – the age 34% of respondents say they expect to be before moving out of home
The thought alone may make parents shudder – children staying in the family home until they’re 30 years old. While a few decades ago the idea would have sounded bizarre, it’s now becoming a reality.
34% of those surveyed said they expect to stay at home until they’re at least 30 years old – up an incredible 14% in just two years.
63% of respondents who are still living at home, say the reason they’re still there is because they can’t afford to move out.
Worse still, most of those who do live at home say once they do move out, they will still have to rent before they can afford to buy a property.
As affordability reaches crisis point, more Millennials are considering turning to family for help.
27% say family assistance to raise a deposit would be great, while one in five said they’d welcome help with paying off their mortgage.
Despite looking for a helping hand, most Millennials aren’t looking for a handout – with just 11% saying they want their family to purchase them a home outright.
Of the 2,220 people surveyed, 79% said removing stamp duty would significantly improve affordability, that includes 87% of baby boomers and 72% of Millennials.
Also rating highly was more concessions for first home buyers, more jobs in areas with low housing prices and improved commuting options.
The New South Wales Government currently offers full or partial concessions on stamp duty for first home buyers up to $800,000, but with the median dwelling price now exceeding that amount, many Millennials aren’t receiving a cent.
Corelogic CEO Lisa Claes has warned this issue needs to be fixed, stating “If Millennials’ affordability disillusionment continues, we risk entrenching a generation who become disenfranchised from society.”
Adding, “It raises serious issues around intergenerational equity and should be a catalyst for policy makers to address affordability at a foundational level.”
It’s a notion supported by the REINSW who has long lobbied for the Government to amend the needlessly high stamp duty tax.
This latest data serves as yet another clear example as to why reform is so urgently needed in this area.
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