A new report by ING reveals almost half (46%) of Aussie millennial home buyers say COVID-19 has made home ownership more achievable and a third (32%) say they’ll buy a home within the next one to two years.
According to the report, millennials say they have used lockdown to get on top of their property goals by redirecting travel budgets to a home savings account (59%), taking on a side hustle (37%), and moving back in with their parents (36%).
In order to save and buy a house sooner, half (50%) of all millennial home buyers say they would consider living on the city fringes and the outer suburbs (45km or more from the city), the report found.
More than one in five (22%) say they plan to buy a smaller property in a cheaper area and rent it out until they can afford their forever home, while one in 10 (9%) say they would consider buying a property with a friend or family member to get on the ladder quicker.
What’s more, millennials seem to be using different tactics and making significant lifestyle sacrifices to save for their future home.
Almost half (48%) say they will limit their personal shopping, reduce dining out experiences (42%) and recreational drinking (28%), give up their gym membership (21%), and date less (24%).
ING’s Head of Home Loans, Julie-Anne Bosich says:
“What this research suggests is millennials and Australians in general haven’t given up on the great Australian dream of owning their own home, they’re just re-thinking how they go about getting there and re-evaluating where they might want to live.”
“It suggests many people, especially millennials are being savvy by taking advantage of record low interest rates, government assistance and a weakened housing market to get on the property ladder.”
“The ING Future Focus: Homeownership Report gives an overview of how the pandemic has changed how Aussies feel about their homes and home ownership and offers practical, money saving design tips for those wanting to make better use of space.”
What are some of the key findings from the report?
1. The Australian Dream revived and re-defined
Most millennial Aussies are setting their sights on owning one home (75%), over flipping houses (8%) and buying an investment property (10%).
2. The new home ‘essentials’
Millennials looking to buy are prioritising fast internet (40%), an outdoor space like a balcony, garden or patio (37%) and space to exercise (27%). They’re also buying for comfort (32%), stability/security (21%) and protecting their future (15%).
3. The home turned ‘Lifestyle Hub’
Since lockdown, a quarter of Aussies (30%) say they now see their home as a ‘lifestyle hub’ and despite public spaces now open, many plan to continue exercising (39%), dining (30%), socialising (29%) and working (25%) more frequently at home.
4. Buying property with a partner
Millennials (60%) are notably more likely than Gen Z (41%) or Gen X (35%) to enter the property market with a partner, however 1 in 5 millennials (22%) plan on doing it alone.
View the full ING Future Focus: Homeownership Report here.
