Originally published July 2020
ING’s Future Focus: Homeownership report reveals many millennials seem to be paving new pathways to homeownership and re-thinking their ‘essentials’ to get on the property ladder.
A report by ING reveals almost half (46%) of Aussie millennial home buyers say COVID-19 has made home ownership more achievable and a third (32%) say they’ll buy a home within the next one to two years.
According to the report, millennials say they have used lockdown to get on top of their property goals by travel budgets to a home savings account (59%), taking on a side hustle (37%), and moving back in with their parents (36%).
In order to save and buy a house sooner, half (50%) of all millennial home buyers say they would consider living on the city fringes and the outer suburbs (45km or more from the city), the report found. More than one in five (22%) say they plan to buy a smaller property in a cheaper area and rent it out until they can afford their forever home, while one in 10 (9%) say they would consider buying a property with a friend or family member to get on the ladder quicker.
What’s more, millennials seem to be using different tactics and making significant lifestyle sacrifices to save for their future home. Almost half (48%) say they will limit their personal shopping, reduce dining out experiences (42%) and recreational drinking (28%), give up their gym membership (21%), and date less (24%).
ING’s Head of Home Loans, Julie-Anne Bosich says:
“What this research suggests millennials and Australians in general haven’t given up on the great Australian dream of owning their own home, they’re just re-thinking how they go about getting there and re-evaluating where they might want to live.”
“It suggests many people, especially millennials are being savvy by taking advantage of record low interest rates, government assistance and a weakened housing market to get on the property ladder.”
“The ING Future Focus: Homeownership report gives an overview of how the pandemic has changed how Aussies feel about their homes and home ownership and offers practical, money saving design tips for those wanting to make better use of space.”
Key findings from Future Focus: Homeownership Report include:
- The Australian Dream revived and re-defined: most millennial Aussies are setting their sights on owning one home (75%), over flipping houses (8%) and buying an investment property (10%)
- The new home ‘essentials’: Millennials looking to buy are prioritising fast internet (40%), an outdoor space like a balcony, garden or patio (37%) and space to exercise (27%). They’re also buying for comfort (32%), stability/security (21%) and protecting their future (15%)
- The home turned ‘Lifestyle Hub’: Since lockdown, a quarter of Aussies (30%) say they now see their home as a ‘lifestyle hub’ and despite public spaces now open, many plan to continue exercising (39%), dining (30%), socialising (29%) and working (25%) more frequently at home
- Buying property with a partner: Millennials (60%) are notably more likely than Gen Z (41%) or Gen X (35%) to enter the property market with a partner, however 1 in 5 millennials (22%) plan on doing it alone
View the full ING Future Focus: Homeownership Report here.
This research was commissioned by ING and conducted by YouGov in June 2020. It comprises two surveys: a nationally representative sample of 1,057 prospective Australian home buyers aged 18+, and a nationally representative sample of 1,056 Australians aged 18+.
Millennials: People born between 1981 and 1996
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.