More young Australians focused on paying off mortgages

New data released by ME Bank has suggested that younger Australians are becoming increasingly fixated on property, with the non-major bank documenting a recent spike in the cohort’s prioritisation of either paying off a mortgage or securing property.

The figures, which are included from ME Bank’s incoming Household Financial Comfort report, come following a survey of 1,500 Australians, conducted over November and December. 

According to the bank, respondents were provided 15 financial goals and asked which they were actively working towards. 

According to the results, 29 per cent of those aged between 18 and 34 without children expressed they were actively working towards paying off a mortgage, while 19 per cent stated they were saving enough to buy a property to live in. 

Compared to ME Bank’s previous survey results, which interviewed 1,500 Australians across June and July, both of these latest figures mark an increase of three percentage points. 

The results also note a distinct focus held by young adults in investing in their own business with 18 per cent stating that was their current financial goal, up from July’s results of 4 per cent. 

Further, they suggest fewer young people are interested in building wealth for a retirement (18 per cent, dropping from July’s 23 per cent in July) or building “rainy day” savings (10 per cent, down 19 percentage points from July’s findings). 

Paying off a mortgage was also found to be a shared top financial priority for couples with either young or older children (34 per cent), as well as the number one most common response in the entire survey at 24 per cent. 

However, building savings for a rainy day – the second most common general response at 23 per cent – was the most common top priority for childless adults aged between 35 and 50 (37 per cent), single parents (27 per cent), empty nesters (29 per cent) and retirees (25 per cent).

But despite being the ninth most common financial goal expressed by the respondents at 7 per cent, no cohort despite young adults without children expressed that saving enough to purchase property was a top three financial focus.

Results published by REA Group earlier this month have suggested that first-home buyers and aspiring first-home buyers are now focusing on outer suburbs and regional areas over the inner city.

Further, figures released by CoreLogic found that the average value of property in all capital cities rose by 21 per cent over 2021, with Sydney and Brisbane now reporting median values of $1.1 million and $683,552, respectively. 

Comparatively, regional areas across the country also shot upwards over the year, with the median value growing by 25.9 per cent. 

[Related: Residential land values continue to soar across NSW]