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Non-major bank RACQ Bank (RACQ) has released new research that revealed that almost one in four Queenslanders aged 18–34 intended on buying a home within the next 12 months.
According to the research, the main drivers influencing their buying decision were cost, location, and size, with 70 per cent of respondents considering cost as one of the top factors when buying a new home.
RACQ’s chief executive banking Michelle Winzer said the non-major bank recognised the difficulty of buying a home in the current economic climate for younger people.
“At a time when surging house prices, interest rates and the rising cost of living are making it difficult for young Queenslanders to enter the housing market, it’s reassuring to hear that many are still striving for the great Australian dream of owning a home,” Ms Winzer said.
“According to our research, 60 per cent of Queenslanders aged 18–24 and one in three aged 25–34 are saving to purchase their first home.”
However, the research also found that one in three respondents from this cohort indicated that they were unable to save towards future goals, half of whom said while they were saving money, it wasn’t enough.
Additionally, 43 per cent of Queenslanders said their mortgage or rent was the biggest priority on their household budget.
“It is alarming to hear that 39 per cent of Queenslanders say they feel very concerned about being able to afford their mortgage or rent in the next 12 months,” Ms Winzer said.
“If you have a mortgage, you could consider looking around for a more competitive interest rate to help reduce your repayments.”
Research organisation flags concerns over young FHB
Research from the Australian Housing and Urban Research Institute (AHURI) recently revealed that home buyers born in the 1980s are achieving home ownership “significantly less” than first home buyers (FHBs) born in preceding decades, with the rate of ownership being only 75 per cent of the rate in earlier decades after 20 years.
Ownership rates for households at age 30–34 have “declined substantially”, dropping from 65 per cent of people born in the mid-to-late 1950s being home owners by age 30–34, to 45 per cent of people born in the mid-to-late 1980s over the last 30 years, according to the research.
Additionally, AHURI recently outlined certain measures the government can adopt to assist FHBs to achieve home ownership after it found that FHBs have become more reliant on parental help, such as a financial gift, inheritance, or living rent-free in the family home, which has led fewer younger Australians moving into the property market.
[RELATED: Home ownership rate drops for young FHBs: AHURI]
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