Australia’s booming property market is forcing many would-be buyers to delay or even give up on their home ownership dreams.
A survey of renters across Australia has found more than half believe they cannot afford a deposit, while nearly a third believe they can’t afford mortgage payments.
One quarter of the 1200 respondents surveyed by RealestateVIEW.com.au have avoided buying because they think the market is overpriced, while 22 per cent have found it’s cheaper to rent than to buy.
Location is also a major factor for many, with 28 per cent of renters saying they haven’t bought a property because they can’t afford to buy where they want to live.
Sydney home prices have jumped more than 15 per cent in the past 12 months, while Melbourne prices are up more than 11 per cent, according to figures from property information business RP Data.
RealestateVIEW.com.au general manager Petra Sprekos said the survey showed the cost of buying was too much for many.
“A clear trend is emerging – housing affordability pressures are breeding a nation of renters,” he said.
“The great Australian dream of home ownership is fading for a significant percentage of the population either because they feel unable to obtain and manage a mortgage, or because it’s too expensive to buy into the area they rent in.”
The survey also found nearly half of all first home buyers needed to rely on their parents in some way, by either borrowing money, living with them and investing, or using them as a guarantor.