Housing Affordability Issues Fueling Increasingly Dependent Generation Study Says
A number of different areas around the world are struggling with a real estate bubble, and Australia is said to be one of those places. Financial experts have repeatedly warned about the potential for risks within this market.
When it comes to how much a home costs, prices vary across the country. But the average cost for a home in a place like Sydney for example, is said to be somewhere around $600,000 U.S. or more.
Because of the increasing struggle that many are facing in trying to afford a home for themselves, a growing number of younger people are choosing to stay living at home longer. Many of those who stay at home for a longer period of time say that they are saving up so that one day they can afford the down payment for their own place.
In the recent Perception of Housing Affordability Survey from CoreLogic, that was conducted by Galaxy Research, it was found that at least 9 out of 10 non-property owners are concerned about the cost of buying their own home some day.
Results showed that at least 62 percent of respondents who were still living at home, said that it was because they cannot afford to live on their own. For the survey they included 2,010 participants from Australia who were between 18-64 years old.
They also found that roughly 27 percent of those who were 18 years of age or older, that they were living at home, were doing so in order to save for a deposit some day.
At least 21 percent said that they expected to continue living at home at least until they were 30 years old.
From the total group of respondents who were between the ages of 18-34, 38 percent said that they were renting; compared to 27 percent that were still living at home with parents.
When it comes to the best way for them to try and get on their own two feet some day and be able to afford a nice place, they overwhelmingly reported that they thought a well-paying job was key.
About 30 percent of them said that they are waiting for an inheritance or financial assistance from their family.
And when it comes to the biggest obstacles in their way of home ownership, it's things like the down payment, interest rates, loan approval, and other issues.
The U.S. has similar circumstances, with an estimated 32 percent of adults between 18 and 34 years old still living at home, according to a 2016 Pew Study.
A great deal of young people today see housing as too costly not only in the U.S. and Australia but in many other areas as well, and it's expected by many that the problem is going to get worse before it gets any better.
To try and combat the challenges posed by entering the real estate market today, a number of young people are asking their parents for co-signing help, looking to friends or other family relatives as well to engage in co-ownership, and opting for cheaper solutions like a tiny home.
Pics:
Pixabay
CoreLogic
Livingly
Sources:
https://www.domain.com.au/news/how-can-you-tell-australian-has-a-housing-bubble-only-when-it-pops-20170403-gvc30m/
https://www.businessinsider.com.au/australias-housing-crisis-means-even-wealthy-millennials-plan-to-stay-put-with-their-parents-2017-5
http://www.abc.net.au/news/2017-03-21/reserve-bank-warns-housing-bubble-in-sydney-and-melbourne/8372856
https://www.globalpropertyguide.com/Pacific/Australia/Price-History
http://www.abc.net.au/news/2017-03-24/australian-property-bubble-if-it-looks-and-sounds-like-it/8383380
https://www.theguardian.com/australia-news/2017/may/08/australias-housing-affordability-crisis-creating-dependent-generation-study
http://www.manrepeller.com/2017/01/millennials-living-at-home.html
http://www.theaustralian.com.au/business/property/housing-tipped-to-become-less-affordable-corelogic/news-story/42795b4cd58f806a9b52d9210d116c5a
Related Post:
Living At Home Past A Certain Age
https://steemit.com/philsophy/@doitvoluntarily/living-at-home-past-a-certain-age
As the U.S. housing market reaches "full pricing" again couple with stagnate wage growth nearly the past decade this issue is rearing it's head more and more. Especially in States like NY and CA.
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I live in Sydney and the property market here is insane, people are just borrowing whatever it takes just to get some keys. We have what's called negative gearing, where you claim your losses from an investment property against your income tax. This has massively increased demand for housing to reduce your income tax.
Here in the US, states make a lot of money from home-ownership. The push to get people to become home-owners here is really about making the state free money, it has little to do with concern of home-ownership.
This is why some states want to offer free money on the home (not for taxes - of course) since this will cost banks, but reward the state. Consider this when discussing home-ownership in a jurisdiction where property taxes exist; the push is often from the government, since it provides income.
makes property ownership in a place like the Cook Islands much more ideal :)
You are writing about Australia. My niece is living in Sydney with her family. She told me about the horribly housing costs even for rental.
Thank god I own my appartment in Munich.
lol - "Thank god I own my appartment in Munich".... poor you ;-)
crippling student debt is the answer
for many yes it sure is
Over the last 6-8 years it has become apparent that the middle class is struggling and some things need to be re-vamped.
let's start with central banks :)
Its hard for so many people to make it these days
Fantastic photo of house! Thanks for your story! You are right!