fbpx

How can we help you?

Millennials prefer a better lifestyle over buying a home

clock icon July 24, 2018

Buying your first home can be tough in Australia, but it seems millennials could be priced out by their own lifestyle choices.

According to a report by the Australian Institute of Health and Welfare (AIHW), millennials may be keeping themselves out of the property market based on their own personal choices.

The report found 67% of households owned their own home, down from 71% over the past two decades.

Over the same period, private renting has risen from 18%t to 25%, and the proportion of households renting through state and territory housing programs has dropped from 5% to 3%.

“Australia is experiencing generational change when it comes to home ownership, with younger households being affected by factors such as economic constraints, lifestyle choices and work-home preferences … therefore limiting their ability to become homeowners,” it states.

In other words, millennials may be pricing themselves out of the market by spending their money on higher rents to live closer to work and a better lifestyle, rather than saving.

Better money savers?

But a number of studies have found that millennials actually save money better than previous generations did.

New Westpac Life data shows that the most popular goal for the bank’s 25-34 year old customers is saving for a home, with 10 times more money put away for that purpose than holidays or travel.

Kathryn Carpenter, Westpac’s Head of Savings, said the myth that millennials wasted their money on “lifestyle choices” like smashed avo on toast and travel was not represented in the research.

Are you thinking about buying your first home? If you’re a millennial wondering if property ownership is right for you, speak to an experienced Mortgage Broker. 

Join our newsletter

If you enjoyed what you read, please consider sharing. We'd like to know what to focus on in the future!

Share this article

Related Articles

10/05/2017

What the federal budget means for First Home Buyers

The wait is over for first home owners hoping to catch a break with housing affordability. On Tuesday night as part of the 2017 Federal Budget...

Read More
21/04/2017

Your guide to the FY18 superannuation changes

On 1 July 2017, the biggest changes to superannuation rules in 10 years came into effect. They touched on everything from super contributions to pension drawdowns. While the...

Read More

Close