Home ownership dream still alive for young Australians: Lendlease
A place to call home – very much an attainable proposition according to young Australians
Young Australians still dream of owning their own home and are actively taking steps towards achieving that goal in 2020, according to new consumer research commissioned by global developer, Lendlease.
The national survey of 1,005 Australians aged 18-40 years revealed eight in ten dream of owning their own home, with almost half (47 per cent) believing they will be in their own home within the next five years. Overwhelmingly the Australian dream of home ownership is alive and well, with 79 percent optimistic they will own a home in the future.
Conducted by McCrindle on behalf of Lendlease, the research also found one in six young Australians believe they will be able to buy a home before the end of 2021, and another third are confident they will buy before the end of 2025.
There was a marked sense of optimism about the coming 12 months, with a quarter of young Australians (25%) believing 2020 is the right time to buy a home. Three in ten (30 per cent) are also more confident they will be able to buy a home in the next 12 months compared to the past 12 months. The survey also found a majority of young Australians (58 percent) would strongly steer towards buying and building a new home, over an existing home (42 percent).
The motivations for home ownership, according to the survey participants, are having a place to call their own (69 percent), having their independence (52 per cent), a place to raise a family (50 per cent), and the security home ownership provides (49 per cent).
Saving for a deposit was identified as one of the most challenging obstacles (55 percent) to overcome on the path to home ownership. More than half (54 per cent) surveyed who are yet to purchase their first home are currently saving for their deposit, with one in five “saving hard”. According to the research, the top five ways young Australians are saving for a home deposit are:
1. Cutting back on small expenses (e.g. cafes, eating out, etc.) (45 percent) 2. Saving money with their partner (41 per cent)
3. Opening a specific savings account (36 per cent)
4. Sacrificing a luxury expense (e.g. holiday, new car etc.) (35 per cent)
5. Starting a side hustle (24 per cent)
Interestingly, the media-popularised “OK Boomer” sentiment was strong among the survey participants, with 79 per cent believing the challenge of buying a home today is more difficult for their generation than it was for their parents.
Many young Australians have seriously/somewhat considered purchasing on the fringes of a city (50 per cent), in a major non-capital city (48 per cent), or a regional area (46 per cent), and have brainstormed creative ways to make their home-ownership dream a reality. Gen Z appeared to be more sustainably minded, with 25 per cent more likely to choose their location allowing them to live more sustainably.
Lendlease’s consumer research comes in response to the federal government’s First Home Loan Deposit Scheme, which was launched in partnership with the National Housing Finance and Investment Corporation on 1 January to support eligible first home buyers purchase a home sooner. Supporting up to 10,000 loans each financial year, the initiative will provide a guarantee that allows eligible first home buyers to purchase a home up to a value determined per state.
There are 10 Lendlease communities across New South Wales, Victoria, Queensland and Western Australia that are supporting burgeoning interest in the First Home Loan Deposit Scheme by offering additional incentives beyond the federal government’s 10,000-person cap.
Lendlease’s bonuses range from stamp duty on land being covered at Calderwood Valley and Bingara Gorge; $10,000 off selected lots at Alkimos Beach, Alkimos Vista, Aurora, Atherstone, Elliott Springs and Harpley; to a $10,000 housewarming gift for properties purchased at Springfield.
Matt Wallace, managing director of communities says, “Our new consumer research reveals that 2020 is the year for first home buyers to get into the housing market. Not only are interest rates still near record lows, but first home buyers are able to take better control of their finances with a range of industry initiatives designed to help them out.
"We understand the many challenges facing first home buyers and are ready to help them get their foot on the property ladder. Through several of our communities across Australia we’re offering compelling incentives to fast-track the home-buying process.”
Claire Madden, social trends researcher, demographer & generational expert notes, “Despite Gen Y and Z growing up with the rhetoric of rising housing and living costs, they are showing an optimism and resilience in holding onto the great Australian dream of home ownership.
"Over four in five in our younger generations have the desire to own a home, and almost two in five are extremely or very optimistic that it will become a reality.
"Whilst saving for the deposit is seen by many as the biggest obstacle, these tech-savvy, agile and entrepreneurial generations are switched on to new opportunities and are likely to embrace the home-ownership deposit schemes and find a way to see the dream realised."