Home News Many Aussies think only the wealthy can afford homes

Many Aussies think only the wealthy can afford homes

Font size :



More than half (63.2%) of Australians think only the wealthy can achieve the great Australian dream of homeownership, according to a new study by Mortgage Choice and CoreData.

John Flavell, CEO of Mortgage Choice, said this finding was not surprising, as property prices were growing faster than wages.

According to data from the Australian Bureau of Statistics (ABS), Australia’s homeownership rate has been declining steadily, decreasing to 67% in 2011, from 68.9% in 2006. Meanwhile, the national homeownership rate averaged 69.2% from 1966 until 2011, reaching an all-time high of 71.4% in 1966 and a record low of 67% in 2011.

Victoria’s homeownership rate is now at a historic low, with just 66% of households owner-occupied. In contrast, the state’s homeownership rate was 74% in 2001.

Victoria’s homeownership rate is behind those of South Australia and Western Australia, but is ahead of New South Wales and Queensland.

Although it has become increasingly difficult for many Australians to break into the property market, Flavell said the research indicates that property ownership remains the great Aussie dream.

Apartments are becoming a popular option

Not surprisingly, given the declining rates of homeownership and rising prices, many aspiring homebuyers are willing to compromise on their property choices, with buyers across different demographic groups more inclined towards apartment ownership.

Flavell said that 52,000 apartments were approved for construction nationally in 2011. By 2016, that number had increased to more than 100,000.

Flavell believes this surge is clear evidence that apartments are becoming a popular property option among Australians. “While some buyers are choosing to purchase apartments for the lifestyle options they offer, a lot of people are seeing them as a cheaper way into the market,” he noted.

Aussies are using a variety of purchasing strategies

“Of course, buying a cheaper dwelling isn’t the only strategy home buyers are using in order to get their foot on the property ladder,” Flavell said.

The study’s findings indicate that 31% of Aussies reduce their expenditure to save a deposit, 24% go for smaller or more affordable properties, and 20% aim to reduce the overall expense of purchasing property by buying with friends and family.

CoreData’s research is based on interviews with 1,043 Australians, and tracks their experiences with property.
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Aug 19, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords