What’s changed for first home buyers?

Epping new home front

The past twenty years have brought many changes to our daily lives, such as the impact of social media, wireless technology, a greater awareness of the fragility of our planet – and even first home purchasing.

Research conducted by the Australian Housing and Urban Research Institute (AHURI) has revealed that the 22 years between 1996 and 2018 has seen more Australians buying their first home at an older age.

The mean age of people buying their first home in Australia has edged up from 33 for either a new or established dwelling in 1995–96 to 35 for a new dwelling and 36 for an established dwelling in 2017–18.

The results also show that there has also been a large reduction in the proportion of householders aged 15–24 buying a new dwelling, from 13.2 per cent of all first home buyers in 1995–96 to 3.1 per cent in 2017–18.

The large increase in first home buyers buying townhouses or apartments is seen in the fact that 39.8 per cent of new home buyers bought an attached home or apartment in 2017–18, whereas only 9.3 per cent bought those styles of dwelling 22 years earlier.

In 1995–96 first home buyers who bought a new dwelling were more likely to buy a standalone house (88.6 per cent of new buyers) than was the case in 2017–18, when 65.4 per cent of first home buyers who were buying a new property bought a standalone house.

It’s also not as easy as it was. The research found that first home buyers experienced a 220.3 per cent increase in the price of new homes over the period between 1995–96 and 2017–18, while the CPI over that time was 69.9 per cent and the mean gross household income increased by 64.7 per cent.

 

Source: epspropertysearch.com.au