Analysis of long-running trends in Australia indicates that key life-events are occurring much later in life than they did even ten years ago, according to market research company Roy Morgan Research.
“Australians are living at home for longer, a significant proportion are now renting well into their 40s, and it is only near retirement that a majority of Australians are finally owning their own home after a lifetime of work,” said Michele Levine, CEO of Roy Morgan Research.
“The changing shape of Australia is driven by two demographic trends – millennials are staying at school or in education longer and staying at home or in shared accommodation while they do that; baby boomers, rather than paying off homes as quickly as possible, are using the equity in their homes to renovate, upgrade, invest or finance whatever other activities that want to engage in. The increasing price of housing relative to incomes – especially among younger Australians, is only part of the story.”
Fewer young people are leaving home
Adult millennials are living at home with their parents for longer than they did a decade ago. Today 58% of 18 to 19 year olds live at home compared to 54% in 2007, and over a quarter (28%) of 22 to 24 year olds still live at home, up from 24% in 2007. Meanwhile, 16% of 25 to 29 year olds still live at home in 2017, compared to 12% ten years ago.
The trend of living at home longer has directly contributed to the delay of other key indicators, such as living in shared households, renting, and getting a home loan.
Homeownership is being delayed
The peak time to live in a shared household remains unchanged from a decade ago, and is still between the ages of 22 to 24. Thirty-one percent of the population now participate in this living arrangement, up from 26% in 2007.
Living in shared households has become increasingly popular with older age groups, too. This year, 28% of 25 to 29 year olds live in shared households, up from 20% in 2007.
Moreover, an increasing proportion of Aussies are renting. This year, 36% of 25 to 29 year olds (virtually unchanged from a decade ago) are renting. “Whereas a decade ago more Australians aged 30-34 had a home loan than were renting, now 42% of 30-34yr olds are renting, up significantly since 2007 (33%) and now 38% of 35-39yr olds are renting, up from 29% in 2007,” the report said.
Many are buying homes in their 40s
An increasing proportion of homebuyers are now in their 40s. Under a third of Aussies aged 30-34 now have a home loan (33%), down from 43% in 2007, and 43% of 35 to 39 year olds have a home loan, down from 51% in 2007.
“The figures for 40 something Australians are little changed from a decade ago with 51% of 40-44 yr olds now having a home loan (virtually unchanged from a decade ago) and 52% of 45-49yr olds (up from 50% in 2007),” the report said.
People own their homes later in life
With so many people taking out a home loan later in life, full homeownership is likewise delayed. This year, only 12% of 40 to 44 year olds own their own homes (down from 18% in 2007), and just 18% of 45 to 49 year olds own their own homes (down from 28% in 2007).
“It now takes until Australians are aged 60-64yrs old, almost at retirement age, for a majority (60%) to own their home whereas in 2007 55% of 55-59yr olds owned their home,” the report said.
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