Australia’s home affordability woes have impacted a whole generation of young Australians now facing the daunting challenge of breaking into the property market.
Clover Co-Founder Harry Chemay explains why ownership rates among young Australians, particularly those under the age of 35, have experienced a significant decline over the last four decades.
“Renting now accounts for 31% of all Australian households, according to the most recent Census data,” says Chemay.
“It didn’t always used to be this way, of course. There was a time when property ownership by the age of 35 wasn’t a mere fantasy, it was the lived experience for the majority of younger Australians.”
The gap between income and property prices, once barely noticeable, is now a yawning chasm.
“It’s rapidly becoming an insurmountable barrier to hopeful first home buyers in Australia’s major capital cities, with the problem most acute in Melbourne and Sydney where dwelling prices have increased by 50% and 70% respectively since just 2012 alone,” says Harry.
Watch Harry explain in Part 1 of our 3-part video series on housing affordability in Australia, what young Australians can do to get those keys to their dream home quicker.
Get Clover’s white paper First Home Unaffordability: Part 1 and learn more about:
- the reason for the decline in ownership rates for young Australians,
- the barriers to getting your first home deposit, and
- what options exist for young Australians to save up quicker for that first home deposit.
Read Part 2 of the First Home Affordability series, where we discuss the First Home Super Saver Scheme (FHSSS). The new scheme for first time home buyers, implemented by the government in December 2017, is a response to the falling home affordability in Australia. But does the saving scheme deliver or fall short of the mark to help Australians enter the property market?