Why Young Aussies Stay At Home With Their Parents – With A Third Plan To Stay With Mom And Dad Until They Are 30
- New research shows that 34 percent of the millennials plan to live at home for up to 30 years
- A CoreLogic study showed a strong increase of 20 percent just two years ago
- Researcher Tim Lawless said that young people were increasingly dependent on parents
One in three millennials plans to continue living at home with their parents until they are 30, new research shows.
Priceless real estate in the largest cities of Australia ensures that baby boomers do not become empty nesters.
The situation is so poor 34 percent of young people predict that they will still live at home until they are 30, a dramatic 20 percent increase just two years ago, a survey of 2,220 Australians by the CoreLogic data group.
One in three millennials plans to continue living at home with their parents until they are 30, new research shows
CoreLogic & # 39; s head of research, Lawless, said millennials were increasingly dependent on their parents to enter the housing market.
& # 39; The & # 39; Mom and Dad Bank & # 39; – where young people rely on their parents to support their entry into the housing market, either by helping with a down payment or by helping to pay off loans, becomes one of the last sources of hope for millennials, & # 39; he said.
While house prices in Sydney and Melbourne peaked in 2017, paying off a mortgage is still expensive with repayments that consume 35 percent of pre-tax income.
This is despite the fact that the standard variable interest rate on home loans has been the lowest rate since the 1950s.
The Reserve Bank of Australia lowered interest rates in June and July, bringing the spot rate to a low of one percent.
Saving for a 20 percent mortgage down payment is particularly challenging, especially in Sydney, which has a median house price of $ 877,220 – or a level that is more than 10 times an average, full-time Australian salary of $ 85,000 a year.
Priceless real estate in the largest cities in Australia ensures that baby boomers do not become empty nesters (stock image of an auction)
Achieving this performance takes an average of 8.7 years in Australia, compared to 9.2 years in mid-2017 when house prices in Sydney and Melbourne were still rising.
Australian wages have also risen below average for more than five years.
Single people, who have never been married or divorced, run the risk of being excluded from the property market. Only 30% of them are homeowners, compared to 63% of those with a relationship.
Lawless said millennials became increasingly disillusioned with their inability to buy their own home.
& Millennials have not given up on the great Australian dream – they want to own houses & he said.
& # 39; In fact, they want it even more by refusing it.
& # 39; But they lose hope that someday they will be able to realize that dream. & # 39;
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