The results of recent research show studio apartments as an attractive option for Australians, giving them the option to live closer to their preferred location, rather than in a larger property further away.
Conducted by Ipsos and commissioned by Gateway Credit Union, the research reveals a shift in demographics towards location being an important factor for Australians.
“As a nation, it’s well-known that we love our space and there is research that suggests we have less people living in bigger properties compared to a few decades ago, said Paul Thomas, Gateway Credit Union’s CEO.
“But it may seem as though our obsession with the traditional Great Aussie Dream of owning a home with a backyard may be at a turning point.
“Today’s skyrocketing property prices mean that many are forced to swap one dream for another. Smaller properties that offer a convenient lifestyle, situated in ideal suburbs – often close to city centres and public transport facilities – are now much more desirable than ever before.”
The age group most likely to live in a studio apartment was found to be baby boomers at 44.8 per cent, followed by those aged 18 to 29 at 30.8 per cent, and then those aged 30 to 49 years old at 27.5 per cent.
“Studio apartments were once considered the lowly cousin of the one-bedroom. Today, however, they are a well-suited housing option for mature downsizers and younger generations that are struggling to get a foot on the property ladder,” explained Mr Thomas.
“In fact, our research corroborates this, with 68.7 per cent of respondents agreeing that studio apartments are a good way for first home buyers to break into the current property market.”
According to Mr Thomas, affordability, convenience and lifestyle factors are the biggest factors behind choosing to live in studio apartments.
The perception of the affordability of studio apartments was determined through the majority of respondents who said they would pay as much as $350,000, at 35.2 per cent.
In order to afford a studio apartment, Mr Thomas warned there are typically strict criteria when applying for a home loan to purchase a studio apartment.
“As Australia evolves, high-density living will likely increase, not to mention the Australian Bureau of Statistics estimates that one-person households will reach 3.2 million in 2031, or more than a quarter of all households,” he said.
“The popularity of studio apartments will likely continue as a result and yet very few lenders will consider providing a home loan for any space below 50sqm.”