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Home buying ‘harder than ever’, say FHBs

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Reporter 5 minute read

Almost 80 per cent of first home buyers believe that purchasing a property is harder now than five years ago, despite the low interest rate environment, according to new research.

New research from Aussie Home Loans, which involved a survey of more than 2,000 Australians, has found that 68 per cent of respondents who identified as first home buyers (FHBs) are not confident in the Australian housing market, with 79 per cent of FHBs stating that buying a home is “harder than ever”.

According to the research, only 20 per cent of FHBs said they plan to purchase a property in the next 12 months.

David Smith, chief customer officer at Aussie, observed: “Our study exposed that a majority of Australians show a worrying lack of confidence in the future of the housing market and their ability to finance a purchase.


“It’s a shame to see that due to this lack of confidence, only one-third of Australians are taking advantage of the market uptake when this could be a prosperous time for more home buyers.”

Moreover, the research found that 48 per cent of investors are confident about the Australian housing market, with confidence rising to 61 per cent among those looking to invest in the next 12 months.

When analysing trends across both genders, the research found that 40 per cent of men are confident in the housing market, compared to 29 per cent of women.

On a generational basis, only 29 per cent of Gen X respondents stated they are confident, compared with 36 per cent of Gen Z and Millennials, while just 38 per cent of Baby Boomers expressed confidence in the housing market.

“The research shows that most generations do not hold much confidence in the property market, with Gen Xs, that is, those born in the 1960s to 1980s, having the least amount of confidence,” Mr Smith continued.


“With the housing market changing so rapidly across the country in recent years, it’s likely Gen X was the generation most affected by this volatility, which could explain their lack of confidence.”

Mr Smith added that he is not surprised that large segments of the population lack confidence in the housing market, given the affordability constraints and market volatility over the past few years.

“Housing prices have been decreasing nationally over the past 20 months, leading to a buyer’s market, and with the market starting to stabilise, now could be the time to take action, whether you’re looking for your first home, next home or an investment property,” he said.

Mr Smith concluded by noting the contribution that brokers can have in helping borrowers navigate through all the confusion.

[Related: Aussie founder mulling buyback from CBA]


Home buying ‘harder than ever’, say FHBs
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