New survey results from REST Industry Super show that around 80 per cent of Aussie millennials believe that home ownership is out of reach for them, blaming rapidly rising housing prices and increased cost of living as the culprits.
Even with a good job, young Australians still find it hard to afford the median house price of $512,809 in Brisbane, $725,000 in Melbourne, and a little less than $1 million in Sydney.
According to the Australian Bureau of Statistics, the number of first home buyers declined by about a third in the 10 years to 2016.
"There's no doubt that there's been a cultural shift in the way millennials live—marrying later in life, if at all, travelling and working abroad, switching careers or pursuing further study are just some examples of common factors that can affect when a young a person is ready to enter the property market and their next phase of life," said REST Industry Super chief operating officer Andrew Howard.
Although it is possible for these millennials to move back to their parents while they save up for a deposit, it "may not be appealing to all potential first home buyers," said Daniel Cohen, founder of First Home Buyers Australia. However, it does offer the possibility of huge savings, especially if they can avoid paying rent.
"Even consider negotiating a lower board with your parents if they can see that you are passionately saving money for a property in the future," he added.
Millennials also have the option of finding housemates to cut rent costs.
"Be patient, set yourself a budget, and an automated savings plan," Cohen said.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan