Younger Generations feel Home Ownership is Slipping Away
Although housing affordability is important to many Australians, very few hope that house prices will decrease. The reason for this is that a high percentage of Australians own properties, and a great proportion of our wealth is kept in the form of real estate.
However, recent Australian Bureau of Statistics figures have indicated a growing gap between people who are able to capitalise on the financial gains of home ownership and those who will probably never be in a position to buy their own property.
Between 2011 and 2012, the overall home ownership rate fell to 67% from 69%. This represents a real change in the housing system in this country, and home ownership rates of specific age groups have recorded much more intense falls.
The results of the most recent Survey of Income and Housing showed that, typically, younger generations wanting to own their own homes need to take on larger mortgages.
However, home ownership is still an aspiration of younger people, according to a recent survey of university students in Australia. For these students, housing affordability – including saving for a deposit and being able to make repayments – is of huge concern. Although many have promising employment prospects, there is a pervading concern that they will never be able to pay off a mortgage.