Finance Property Gen Y defers home ownership
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Gen Y defers home ownership

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Generation Y are living it up before committing to buying housing.

A new home builder says most twenty-somethings are more interested in “having a good time’’ than looking for property.

And those who do take the property plunge are heavily influenced by reality television lifestyle programs, asking for all the bells and whistles in their new
 home.

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Orbit Homes director Paul Millson says that unlike previous generations, 
most Gen Ys are delaying purchasing a home.

Mr Millson says many members of this demographic will not be getting into their own home until they are in their thirties.

“We don’t come across too many of them (Gen Y homebuyers),’’ says Mr Millson, whose company builds homes in Victoria and Queensland.

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Gen Y is opting for travel over home ownership. Source: Shutterstock

 

“They are renting apartments or living 
at home with their parents. It’s (whether to buy or not buy property) more of a 
lifestyle choice.

“It (buying home) is not on their agenda until they are in their thirties. It used to be the number one priority to get a home. Now it’s to live
 the life. The twenties is for living. Every kid I know is travelling – it’s a different set of
 priorities to previous generations.’’

The Orbit chief says Gen Y members who do purchase a home “want everything’’.

“They are aspirational and the watch all the lifestyle shows such as The Block, House Rules and Reno Rumble,’’ he says.

But Mr Millson says Gen Y does adjust its housing goals once finance is discussed.

“There’s no doubt they are influenced (by reality TV housing shows) but once we sit down with them and discuss finances, then you say to them what they realistically can afford. As long as they have a bit of wow factor in their kitchens and their ensuites they’re happy. That’s want they want.’’

The Orbit director adds that Gen Y members do not necessarily have to have a big home and are prepared to
compromise on size.

“The size of the home used to be a stumbling block, but now they are prepared to settle for a size
 they can afford. We get young couples who are happy with 14 squares (131sqm).’’

Mr Millson says these buyers are 
driven by “the apartment lifestyle’’, so smaller size homes are more acceptable to them.

The builder
 says he and his competitors are building a diverse range of housing products that cater to the needs of Gen Y and older
generations (Gen X and the Baby Boomers).


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