Among gen Z non-homeowners – Australians aged 25 and below – the percentage who feel they will never be able to afford property has increased from six per cent in 2021 to 15 per cent this year, the research has shown.
Among millennials – those aged 26 to 41 – the amount feeling they will never be able to buy has increased from 21 per cent to 34 per cent.
Finder home loans expert Richard Whitten has said it is sad but understandable that many young people are worried about the prospect of owning a home.
“House prices have skyrocketed over the past few years, and have become downright ridiculous in some areas,” he said.
“But with economists predicting a recession and interest rates finally rising from their rock-bottom lows, it’s likely we’ll see house prices fall in the second half of 2022, especially in Sydney where prices can be more volatile.”
Investment bank Jarden has forecast that property prices in Australia could fall by as much as 20 per cent over the next 18 months.
However, Whitten has suggested a ‘small’ decline in house prices may not mean much after the significant price growth in recent years.
“That said, the situation should improve as interest rates continue to climb, and prices fall further,” he said.
The Finder research further showed that only 33 per cent of Australians believed it was a good time to buy property in July, compared to 67 per cent of people thinking it was a good time in December 2021.
Whitten has advised people wanting to save to keep their money in a high-interest savings account as interest rates continue to rise.
“Share trading is also a way to build wealth, and you can get started with as little as a dollar with some platforms, or even investing your spare change through micro-investing apps,” he said.
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Finder surveyed 2521 people around Australia who don’t own a home online for the research.