Almost three in five Australians believe the next generation will never own their own home, the results of a new survey has shown.
According to research from Ipsos and MLC, 58% of those surveyed said the next generation will be forced to rent all their lives and never own their own home. Much of this anxiety has been fuelled by the increase in house prices over the last five years.
Data from CoreLogic RP Data shows house prices across Australia’s capital cities have increased by a cumulative 49.2% post GFC, since January 2009.
Further, almost 1 in 5 (17%) in the Ipsos and MLC survey indicated that will be relying on family inheritance to pay off their mortgage or ensure their financial security.
This was higher amongst those who believed their parents to be a higher class than them. More than half (55%) of those who believed their parents were upper class said they would have to rely on their parents, while one in five (20%) of those who believed their parents were upper middle class expect to rely on their inheritance.
Almost a quarter (24%) of those respondents who went to a private school said they will need to rely on family money to pay off their mortgage.
This comes as no surprise given more than three quarters (76%) of the 2040 people surveyed say that their mortgage has a big impact on their lifestyle, regardless of their wealth.
Those on household incomes of $70,000–$99,000 (80%) and $150,000–$199,000 (82%) were more likely to agree. However, interestingly there was no difference by location for this finding with those that lived in our most expensive cities and those living in regional areas were just as likely as each other to agree with this statement.