Millennials are more confident about buying a house in Australia than any other demographic, according to a survey carried about by Mortgage Choice.
One in two Millennials said that this was a good time to buy a house, representing more confidence than other age groups. In total, 42% of respondents said that this was a good time to buy property, even considering the current housing boom that has seen prices skyrocket.
According to Susan Mitchell, CEO of Mortgage Choice, so-called Fear of Missing Out (FOMO) was a major driver of home buying intentions among the 30–40-year-old age group.
“It's interesting, because our research showed that FOMO is a big part of it,” she said. “They're conflicted: they know that this is the right time to buy from an interest rate point of view, but they're seeing the prices surge. 42% of Australians still think that it's a good time to buy, and the Millennials are the most confident, with about 45% of them thinking that it's a good time. That's almost half, and I think it is FOMO that is quite an important part of that.”
Given how steep prices currently are, this might not seem the best time to venture into the property market, but as the survey results show, Australians’ confidence in property is near-limitless.
“As an American, I would say that Australians are ever-optimistic about property, they love it,” said Mitchell. “I think if they see the prices continue to go up, they think that they won't have the opportunity to get onto the property ladder. It's interesting because there's a lot of press right now about it being cheaper to buy in some suburbs than to rent. If it's cheaper to buy than to rent in a place that you would like to live, then it's crazy to keep renting.”
“It's a really good time to go talk to a home loan expert, see what you can borrow, get a preapproval and start looking.”
The confidence is at odds with their counterparts in other parts of the world, where fewer and fewer Millennials and the younger Gen Z cohort seem to believe they can own property.
“The research shows that they are (still interested in owning a house),” said Mitchell. “They want a house, they want a yard, they want to be close to shops and they don't want to be too far from their work. And they want to have a place to raise kids. It doesn't seem to be changing. That dream is still there.”
