What’s stopping Australian’s from purchasing their own home?
The perspectives of today’s generations, including Millennials, GenX and Baby Boomers, recognise the different obstacles for housing affordability, with most Australian’s viewing saving for a deposit, stamp duty and the increased number of foreign buyers as the main impediments when considering purchasing their own home.
49% identify not having enough money for a deposit as the biggest impediment from purchasing their own home.
48% believe that stamp duty is the greatest obstacle in purchasing their own home.
49% blame stamp duty & the current number of foreign buyers as the two greatest disadvantages.
Housing Tenure:
How are Australian’s holding & occupying their homes?
Greater Brisbane Housing Tenure, 2016
Australian Bureau of Statistics,Census of population & Housing 2006 to 2016.
Greater Brisbane, Change in Housing Tenure 2006 to 2016
Australian Bureau of Statistics,Census of population & Housing 2006 to 2016.
- Only 25% of the Greater Brisbane population owned their home outright in 2016.
- 33% of Greater Brisbane population were renting their home in 2016.
- 34% of the Greater Brisbane population had a mortgage on their home in 2016.
- Number of people renting in Greater Brisbane has increased by 25% between 2006-2016.
In Summary…
There is an evident change in the way Australian’s hold and occupy their homes. Every year a higher percentage of the population is deciding to put home ownership on hold and remain in the rental market for longer.
Australian’s are now renting for longer with 43% of renters having rented for more than 10 years.
What’s driving this change?
Affordability has been the major driver of the increased number of Australian’s renting.
Over the past 5 years, property prices have increased by 30% across the eight capital cities, having a direct impact on the population’s ability to afford to own their home.
Throughout Australia’s capital cities, most people see the increased cost of buying as the greatest deterrent from owning their own home.
A high percentage of Australian’s believe that saving for a deposit is the biggest challenge for housing affordability, with a lesser percentage of the population blaming stamp duty and the increased number of foreign buyers.
What does this mean for Australian’s?
- This change in housing tenure, will continue to add pressure on the rental markets. As housing affordability worsens, more and more people will enter the rental market therefore increasing the demand for rental properties in the short-term, until new developments catch-up with the increasing shortage in supply.
- Intern, this will increase the investment yields of rental properties in the short to medium-term, whilst also increasing rental prices, especially in areas in close proximity to the major capitals CBD’s.
- On the other side of the spectrum, policy makers will be forced to create new laws that give greater long-term security for tenants.
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