Most potential first homebuyers would rather keep their current lifestyle and continue to rent than incur the ever-increasing debt of buying a home, a recent BankWest/Mortgage and Finance Association of Australia (MFAA) study revealed.
Phil Naylor, CEO, MFAA, said: "Those in this category have risen by 6.7% over the past 12 months. It appears some of the effects of generational shift may be hitting the market, with a sizeable portion of the market choosing lifestyle over buying their first home in a less desirable suburb."
He added that the end result of the survey proved once again the affordability issue obvious within Australia today.
"It is all part of the housing and affordability issue - when you're already in the market it is easier to move onto better things - but to get into the market is the crucial first step and the increase in house prices over the past few years has been reflected by the response to our survey," Naylor explained.
Phil Colton, head of broker sales, BankWest supported Naylor's comments. He said the research proved that 69.6% of potential first homebuyers surveyed did not intend to enter the market for another 12 months - a result which varied from state to state.
"Victorians (36%) and South Australians (47%) are more confident they will enter the market in the next 12 months than those in other states, indicating that there may be better value in those states."