Australians have expressed significant concerns regarding housing affordability and the rising cost of living, according to a recent report. The Home Buyer Barometer report from Compare The Market surveyed 3,000 Australians, revealing a stark picture of financial pressures and challenges faced by households across the nation.
The survey results indicate that only 7 percent of respondents believe the cost of living has improved over the past year. Despite this, a notable 78 percent said they remain optimistic about the future of the economy. Interestingly, 79 percent reported not receiving any financial education during their schooling, raising concerns about financial literacy among the population.
With the rising costs of daily essentials, many Australians are feeling the strain. Over 21 percent of those surveyed identified groceries as their most concerning expense, with the average weekly expenditure reaching $198.16. This translates to over $10,304 annually, highlighting the financial burden many families face just to meet their basic needs.
The report also focused on home ownership trends. Among those with a home loan, 73 percent have actively sought better mortgage deals in the past year. Furthermore, 62 percent of respondents plan to pass at least one property down to their children as part of their inheritance strategy. The financial support from parents, often referred to as the Bank of Mum and Dad, averages around $40,000 for children’s deposits, according to property expert Andrew Winter.
The introduction of the Federal Government’s new 5 percent deposit scheme offers hope to aspiring buyers, particularly those whose families are unable to provide financial support. Winter noted, “The Bank of Mum and Dad has done some hardcore lending in recent years, with the median amount gifted sitting around $40,000. It’s also great news for aspiring buyers whose families do not have the means to chip in.”
Despite the potential for assistance, the challenges of entering the housing market remain daunting. The report reveals that many Australians are making significant sacrifices to save for a deposit. 8 percent of respondents indicated they have delayed starting a family to save, while 20 percent have taken on side jobs or second jobs to accelerate their savings. Additionally, about 1,500 respondents reported carrying credit card debt, which adds to their financial stress.
The cost of utilities is another concern. The median quarterly energy bill stands at $350, and one in five individuals have not changed their energy provider in over a decade. With the average weekly petrol cost at $56.47, these ongoing expenses contribute to the financial anxiety felt by many households.
Emma Lincoln, 29, and her fiancé, Dan Colby, 32, recently relocated to Adelaide from Melbourne. They are currently renting in Greenacres but hope to purchase a home within the next few years. Lincoln described the difficulties of house hunting in Adelaide, noting that agents often do not list prices, making it harder to gauge property values. “House hunting is really challenging here because agents in Adelaide generally don’t list prices, whereas in Melbourne they do,” she explained. “That said, compared to a home the same distance from the city in Melbourne, homes are cheaper here, but there isn’t the variety in property types that you get in Melbourne.”
While the affordability of homes in Adelaide may present opportunities, the complexities of the market can be overwhelming for prospective buyers. As the conversation around housing affordability continues, it remains clear that many Australians are grappling with financial challenges that affect their quality of life and future aspirations.
