Nearly half of home-buying Millennials believe the COVID-19 situation has actually made home ownership a more achievable goal.
According to a new report from ING, an attitude shift means a third of those who are considering a property purchase will do so within the next 12 to 24 months.
The Future Focus: Homeownership report has found that Millennials have used the lockdown to get on top of property goals – 59 per cent have redirected travel budgets to a home savings account, 37 per cent have taken up a side hustle, while 36 per cent have moved back in with their parents.
ING’s head of home loans, Julie-Anne Bosich, believes that the research suggests Millennials, and Australians more generally, “haven’t given up on the great Australian dream of owning their own home, they’re just rethinking how they go about getting there and re-evaluating where they might want to live”.
In order to save and, ultimately, to buy sooner, ING found that half of Millennial home buyers are now considering living on the city fringes and in more outer suburbs that could be more than 45 kilometres from the city.
A further one in five (22 per cent) is intending to buy a smaller property in a cheaper area and rent it out until they can afford a forever home.
The report revealed that Millennials are notably more likely than Gen Z or Gen X to enter the property market with a partner.
Six in 10 of them (or 60 per cent) expect to take this route, compared with just 41 per cent of Gen Z individuals and 35 per cent of Gen X buyers.
While one in five Millennials intends to do it alone, another 9 per cent of Millennial purchasers are considering buying in with a friend or family member to enable them to get on the ladder more quickly.
Ms Bosich said the report suggests, “Many people, especially Millennials, are being savvy by taking advantage of record-low interest rates, government assistance and a weakened housing market to get on the property ladder.”
With the recent lockdowns likely proving to Millennials that they can cut down on external expenses, ING has revealed that more than half of home-purchasing Millennials will limit personal shopping to achieve their property goals.
A further 42 per cent are planning on reducing their dining-out expenses, while 28 per cent will cut down on recreational drinking.
With gyms another victim of recent restrictions, some Millennials have also decided they won’t be going back – 21 per cent will give up their gym membership in pursuit of stronger savings.