Industry survey reveals mounting hurdles for under-35s
Home ownership is becoming increasingly unattainable for Australians under 35, according to findings from a recent survey conducted by loan technology provider Lextech.
The survey, held at the Customer Owned Banking Association’s annual conference in Brisbane, gathered responses from more than 100 banking and finance executives.
Eighty-five percent of those surveyed said they believe younger Australians are facing greater difficulties entering the property market. Only 11% disagreed, highlighting a broad consensus within the sector.
“The notion that Australia faces a systemic housing affordability challenge is widely shared by banking and finance professionals,” said Peter Maloney (pictured right), chief executive officer at Lextech. “With less than 5% of existing homes changing hands each year, it’s clear that younger buyers are confronting significant hurdles.
“Federal and state government initiatives providing financial support to first-home buyers are critical, as well as improved planning laws for faster land releases, because there is a massive wave of 20- to 35-year-olds that will either realise the great Australian dream of home ownership or be persistently trapped in the rental market. Without continued targeted action across the nation, we risk leaving an entire generation behind in the property market.”
The research also revealed that 79% of respondents expect a Reserve Bank rate cut would encourage new lending, while 16% said it would not.
Census figures support the survey’s findings, showing a marked decline in home ownership among younger age groups. For those aged 30 to 34, ownership rates fell from 64% in 1971 to 50% in 2021. Among 25- to 29-year-olds, the rate dropped from 50% to 36% over the same period.
Ownership among 50- to 54-year-olds also declined, from 80% in 1996 to 72% in 2021. Nationally, the overall home ownership rate decreased from 70% in 2006 to 67% in 2021, with older Australians helping to maintain the figure due to higher levels of outright ownership.
“The Australian banking system remains one of the most successful in the world, supporting the economy and Australians with a diverse range of lending options from residential and business loans to building and construction, SMSFs, and newer product innovation such as reverse mortgages,” Maloney said.
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