Whether you’re finishing Year 12 at Ozford College or are approaching graduation from Ozford Institute of Higher Education, you may be planning to move out of your parent’s house, or perhaps you are currently renting. Your mind might start to wonder about buying your own property one day, but how easy is it for the younger generation to buy a house?
Our parents or grandparents, often known as the baby boomers, grew up during a time when housing was a lot more affordable than it is now. Only a generation later, house prices soared considerably, making it extremely difficult for the following generations to purchase their dream home and, therefore, making renting a popular alternative.
However, younger generations remain optimistic about buying a property, with Gen Z (Australians born after 1996) being the highest proportion of young people wanting to own their own home in the future despite knowing the challenges that may entail.
A survey conducted in 2020 by Commonwealth Bank Australia revealed that most of this age group were more interested in buying an apartment than a house. Apartments are a lot more affordable these days, whereas the types of houses that baby boomers purchased as their first home buys nowadays would take 40+ years to save up for.
What are the challenges for Gen Z?
Not only is the current property boom making it increasingly problematic for younger age groups to enter the housing market, but the increasing popularity of a casualised workforce means that a high percentage of young people are on casual contracts. Not benefitting from job security, holiday and sick pay and working less than the full-time hours are affecting young people from meeting the requirements needed for entering the property ladder.
Additionally, most of our young generations, including 75% of Gen Z, are left with hefty student loans to pay off from their colleges and universities, therefore, being in debt for most of their working life.
Additionally, the pandemic threw a spanner in the works, sending many to go back and live with their parents or another family member after a considerable number of job losses or students unable to work as a result of the frequent lockdowns.
I’m a Gen Z, and I want to buy a home. What should I do?
While there is a lot against you, the best thing you can do right now is to try and save.
- Open a savings account and dedicate yourself to putting a proportion of your weekly or monthly salary into it.
- If you have enough savings now for a deposit, it might be worth investing in a property. Perhaps consider purchasing an apartment first before the big grand house that you plan to settle down into.
- Keep track of the housing market because things constantly change.
- Finally, be optimistic. Manifest it.
One contributing factor to assist you in buying a house is having job security. Through studying our Higher Education programs here at Ozford Institute of Higher Education, you won’t have to worry about getting a job once you’re qualified. If you want more information on how to apply for one of our courses, contact enrolment@ozford.edu.au