Almost half of Australia’s young adults no longer list home ownership as a major life goal.
New research from Macquarie University found young adults were delaying, or forgoing the idea of owning a home, to avoid debt, pursue other goals and enjoy their lives.
Professor Elizabeth Sheedy conducted the research in the wake of Australian Housing and Urban Research Institute data which showed home ownership rates were falling among people aged between 25 and 34.
Professor Sheedy’s study interviewed young adults aged between 18 and 40 and found 60 percent of the respondents considered home ownership to be a major life goal.
She said another 19 percent said while they would like to own a home, they didn’t currently see it as a pressing life goal.
“For some, it is not a goal at all. And for a small number of people, seven percent, home ownership is a goal they feel is unattainable for them.”
Professor Sheedy said one of the questions in the study was how housing related to people’s broader financial and life goals.
“We found many are ambivalent towards home ownership and have other goals that are much more of a focus: developing careers, travelling and enjoying their freedom.
“As one participant said: ‘I think I would regret (it) if I was old and had a house, but no experiences … life is short’.”
She said for the group that were ambivalent about home ownership, or who said it was not a life goal for them, one of the big drivers was that people hated debt.
“One participant talked about the fact that mortgage means ‘death contract’.
“There are some very strong preferences for freedom from debt and just freedom in general – freedom to travel or explore different career options. People don’t want to pin themselves down to a mortgage contract that would take away their flexibility.”
Professor Sheedy said researchers also discovered people often had a rosy view of home ownership and felt it would be a solution to a lot of their problems, but once they had achieved it, felt the experience of ownership was costly, stressful and disappointing.
She said for the young adults in the study who had purchased their own property or were planning to buy a home, researchers found many were making significant sacrifices to achieve their home ownership dreams, such as avoiding eating out or going on holidays.
“Some also had help from their parents, whether in the form of advice and moral support, financial help with a deposit, provision of guarantee on a mortgage or co-ownership, or free or reduced board while they saved.
“While there are parents loaning or gifting money to their children, it is even more common to provide free board and lodging while they save up for a deposit,” Professor Sheedy said.
