 iGen living at home longer
Young Australians are living at home and unable to buy property according to a survey of West Australians. The West Australian and insurer HBF’s iGeneration survey interviewed 18 - 30 year olds and found that more than third lived with their parent or in-laws. The younger respondants posted a higher number, with 60 per cent of 18-21-year-olds still living at home.
Nearly half the respondents said buying a home in the next five years was out of the question.
Rob Druitt, president of Real Estate Institute of WA says despite falling interest rates and lower house prices, many from Generation Y are unable to buy their own home. “The sheer dollar value of buying property is so much higher and the commitment now means a larger mortgage than ever before, and that does make it more difficult for the iGeneration, particularly if they are holding HECS debts as well,” he said.
“It is a big commitment. Everyone is marrying later and having children later, so why not buy a house later?”
There is some good news though. The iGeneration - similar in ages to Generation Y - are feeling optimistic about their employment future, with many considering many jobs rather than long-term employment. And half of iGens who do not own their home are more confident about buying one than a year ago, which seems to be a result of the recent fall in house prices and boost to the first-homeowners grant.
According to the survey, men are almost twice as likely to live at home with parents, and the number of iGens sharing a house with friends has doubled in the past year, while just 3 per cent live in a house they had bought on their own without family or a partner.
One in five who owned homes, or hoped to within the next five years, estimated it would take them 21 to 40 years to pay their debt.
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