Are Aussies losing confidence in achieving homeownership?

Young Australians seem to be losing their confidence in their ability to achieve homeownership as they grapple between their short-term cost of living issues and their long-term financial goals.

Douugh’s Wealth Health research found that around nine in 10 Australians are worried with their financial situation.

Given their financial worries, more than a quarter of Australians are not confident they will achieve homeownership. Still, one in three Australian still have homeownership as their biggest financial goal.

The share of Australians seeing property as their current wealth building strategy varies — only 12% among 18-22 years old, 15% among 23-27 years old, and 21% among 28-32 years old.

In terms of gender, 78% of men are “somewhat confident” about their ability to achieve homeownership, compared to 66% of women.

Douugh founder and CEO Andy Taylor said the rising cost of living is taking toll on young Australians’ long-term goals and financial stability.

“The dream of home ownership is almost at the point it feels unachievable for a lot of Aussies — but it’s important we don’t lose sight of creating sound money habits in the meantime to build the necessary foundations to bring our long-term financial goals back into reach,” he said.

For more than a third of Australians, a lack of savings, unexpected expenses, and living paycheck-to-paycheck are considered key barriers to their financial goals.

Still, many Australians recognise the importance of setting financial goals and strategizing.

In fact, around four in five said building long term wealth is crucial, while around the same are utilising savings as their wealth building strategy.

However, 75% of Australians admitted that they have never sought professional help of advice, while 60% said their knowledge about investing is limited.

“Utilising a range of wealth building strategies, investing in small but frequent intervals, and seeking professional advice if possible is going to support Aussies through this rough period without having to choose between now or then,” Mr Taylor said.

A recent study by ING showed that the rising costs of living and the gradual winding of the pandemic changed the traditional concept of an ideal home for many Australian families.

The study found that many homebuyers are willing to sacrifice a big home to be closer to amenities, family, friends and work in order to spend more time doing the things that matter most to them with the people they care for most.

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