Research shows that young Australians still consider homeownership a crucial decision.
PRD Real Estate’s latest report has revealed that homeownership is an important goal for 77% of young Australians as well as tertiary students.
This research shows that, despite media reports claiming that millennials have given up on homeownership, reality is very different. The study found that tertiary students still dream about homeownership in Australia.
What are they looking for in a home and why? 40% of respondents want their homes within six to ten kilometers of the city’s central commercial district.
77% prefer a detached home as their preferred housing type. 60% of people who want a separate house prefer at least two stories.
“Although these results and previous studies have shown that a separate house is preferred, it contrasts to the current trend of houses being approved for construction — most of which are apartments,” the study said.
However, only 15.5% desired an apartment or flat as their first home.
It also revealed the components that they wanted in a home. The ideal home would have three bedrooms, two bathrooms, a lounge area, parking for two cars, and a large outdoor space.
The study found that young Australians are much more likely to own their homes than they think.
This is a dream that will be realized in five to ten decades. Although homeownership is desirable, these aspirations will not last forever. The study indicated that it can change depending upon many factors.
25 percent of young Australians see high property costs as a barrier to their dreams. 17.5% consider interest rates the biggest obstacle.
According to the study, 25% of Australians aged between 40 and 49 years old are comfortable spending between $400,000-$499,000 on a home. 19% could afford homes worth up to $599,000.
The study was performed among young Australians, tertiary students and residents of Brisbane. In Brisbane, the median house price in 2019 was $670,000. Only 9.5% of respondents would be willing to pay more for a home than the median price.
The study found that “The difference between students’ housing preferences and market conditions is a barrier in itself.”
Suncorp released another study last year which found that Australians 18-34 are the most efficient savers. A third of their monthly income goes towards tangible goals such as buying their first home, investing in property or shares, and 32% is used for that purpose.
“Many in this age group are likely to be enjoying an increase in their income as they finish university or build their career, while still having the flexibility of fewer big financial commitments — a strength which generally stops as you get older,” said Chris Fleming, executive general manager for consumer banking at Suncorp.