The decline in home ownership amongst younger Australians has been well documented on this site. For example, the release last year of the Household, Income and Labour Dynamics in Australia (HILDA) survey showed a huge decline in home ownership amongst 25-34 year olds, as well as between 35-44 year olds:
Now, research shows that the millennial home ownership rate in Australia (28%) is the second lowest of nine nations surveyed by HSBC, and way below the average home ownership rate of 40%. From The AFR:
High deposits and the cost of homes relative to salaries were the biggest reasons cited by Australian respondents…
The HSBC survey cited financial hurdles to ownership among millennials. Three-quarters of Australian respondents said they had not saved enough for a deposit.
As many as 61 per cent of Australians surveyed said they needed a higher salary before they could buy a home compared to just 54 per cent of millennials in Britain.
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It must be all that smashed avocado on toast Australian millennials are buying!
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
