Millennials prefer a better lifestyle over buying a home
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.
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