One in three Australians cannot afford to own their own home: new Galaxy poll
10 October 2016
For many people nationwide the great Australian dream of “owning your own home” is now all but out of reach.
A new Galaxy survey of 1,014 people nationwide conducted on behalf of Fox Symes, the leading provider of debt solutions in Australia, found that one in three respondents (33 per cent) say owning their own home is now out of reach. These 6 million Aussies would like to buy their own home but say they simply cannot afford it. Alarmingly, this figure is almost twice as high for millennials in the 18 – 34 range (61 per cent).
“These figures are concerning and reflect the frustrations of many,” says Fox Symes director Deborah Southon. “Home ownership is still a massive sought after goal – only one in 10 people in the survey say they are not interested in owning their own home.
“No wonder young people are fretting - they have been priced out of the market. So many of them are struggling just to come up with a deposit for a home combined with rental costs, particularly in major cities. Many are paying well over the recommended 30 per cent of their wage on housing costs whether they own a place or not, which is causing them to fall into debt."
With skyrocketing house prices in many of Australia’s major cities it is no surprise that more city dwellers (36 per cent) believe that home ownership is out of reach compared to 29 per cent of those living in regional areas. Queenslanders recorded the greatest level of pessimism about the issue (38 per cent) compared to Western Australians (24 per cent) who recorded the lowest.
In particular, those on household incomes of less than $100,000 a year have the toughest road ahead as 38 per cent felt they would be forced to keep renting – double the number of respondents who felt the same way earning over $100,000 (19%).
“The issue of housing affordability in Australia is putting a massive strain on a huge number of Australians,” says Ms Southon. “Flat-lining wages and escalating costs for food, bills and utilities are forcing people to abandon their home ownership dreams and to continue renting.
“For those who are determined to own their own home, it’s still not impossible. However you do need to start budgeting accordingly and tightening your belt wherever possible. It also may mean you need to lower your expectations and consider other types of dwellings or areas.”
About the research The study was conducted by Galaxy Research between 18-22 August, 2016. The survey was administered online amongst a nationally representative sample of 1,014 Australians aged 18 years and older covering: NSW, ACT, VIC, TAS, QLD, SA and WA.