Survey finds rising pessimism about homeownership; experts call for government action
A growing number of Australians believe they will never be able to purchase property, according to new survey data, as industry experts call for urgent measures to address housing affordability and economic pressures.
Finder’s Consumer Sentiment Tracker showed that more than a third or 35% of Australians do not think they will ever be able to afford a home.
According to Graham Cooke (pictured), head of consumer research at Finder, the prospect of homeownership is becoming increasingly unattainable for many. “Record prices, steep borrowing costs, and saving for a deposit are locking people out. In many suburbs, even a six-figure salary won’t comfortably cover a mortgage,” he said.
“The key is to focus on what you can control – setting a clear savings goal, finding ways to cut back on spending, and taking advantage of any schemes and grants you might be eligible for.”
When asked about the most effective government action to improve housing affordability, experts pointed to increasing supply and reforming policy.
“Build, baby, build,” said Kyle Rodda, market analyst at Capital.com.
For Noel Whittaker, adjunct professor at Queensland University of Technology, the government faces a choice between reducing demand or boosting supply. “The way to reduce demand is to limit immigration and reduce all these government schemes that are allegedly making homes more affordable,” he said.
“As far as supply goes, I’m pessimistic. There’s a huge bottleneck, and the bureaucratic processes of government at all levels make it nearly impossible.”
Nicholas Frappell, global general manager at ABC Refinery, noted that reducing immigration could lower demand in the short term but would not address long-term supply issues.
Stephen Miller, consultant at GSFM, emphasised the need to ease building restrictions. “Supply! Supply! Supply! Through easing restrictions on building,” he said.
Mala Raghavan, senior lecturer at the University of Tasmania, added that government policy should focus on removing barriers to development. “That means the government should play an enabling role by introducing and coordinating policies that remove barriers to housing development,” she said.
“This includes streamlining planning and zoning regulations, investing in infrastructure that supports new housing developments, and offering incentives for affordable and sustainable housing projects. In addition, facilitating access to land, reducing construction bottlenecks, and partnering with private and not-for-profit sectors are crucial steps to ensure supply keeps pace with demand,” said Raghavan.
Meanwhile, Finder’s latest RBA Cash Rate Survey, which polled 34 economists and analysts, found that 91% expect the Reserve Bank to lower the cash rate by 25 basis points to 3.60% – a move that could lower borrowing costs, making home loans more affordable for some Australians.
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