The great Australian dream of home ownership lives on with Australia’s youth, although many believe it is too expensive to buy and that future interest rates hikes will make home ownership difficult, an industry report has found.
PRD real estate conducted a study amongst tertiary-educated Australians, finding 77 per cent of Millennials rate buying a home as important or very important.
Despite having a strong desire to obtain a property, the survey revealed younger Aussies are putting off purchasing a property for the medium term.
“Although home ownership was identified as ‘extremely’ or ‘very important’ to tertiary students, it was revealed to be a future aspiration by many surveyed (five-plus years into the future). Participants also indicated that while home ownership is currently desirable, their preferences could change over time,” the report found.
Nearly 59 per cent believe the cost of acquiring a property is a major barrier, while many tertiary-educated Australians do not have the knowledge to acquire a property.
What do Millennials want?
Despite Brisbane having a strong supply of apartments, Brisbane Millennials’ ideal property is a freestanding house, the report highlighted.
The ideal property in the Brisbane market according to Millennials is a “standalone house with three bedrooms, two bathrooms, one lounge room and enough room for two cars. It was also found they would like to live within a 6-10km radius of Brisbane’s CBD and be close to transport modalities and public amenities,” the report said.
According to the report, $400,000-$600,000 was the price range for a home that most of the tertiary students were shown to favour (41.0 per cent).
However, the continued rise of property prices ahead of wage growth has made the traditional notion of home ownership seem unattainable to them, the report concluded.