A recent report by Compare The Market has uncovered significant concerns among Australians regarding housing affordability and the cost of living. The survey, which included responses from 3,000 Australians, revealed that only 7 percent of participants felt the cost of living had improved over the past year. This study highlights the financial pressures many are facing as they navigate escalating costs.
Despite the grim outlook on living expenses, optimism about the economy remains relatively high. Approximately 78 percent of those surveyed expressed a positive outlook for the future. However, a staggering 79 percent indicated they did not receive financial education during their school years, raising concerns about preparedness for financial challenges.
The daily struggle of managing expenses has taken a toll on households. More than 21 percent of respondents identified groceries as their biggest concern, with the average weekly expenditure reaching $198.16, translating to over $10,304 annually. Among those with home loans, 73 percent reported they had sought better deals in the past year, underscoring the effort to alleviate financial strain.
In terms of inheritance planning, 62 percent of respondents intend to pass down at least one property to their children. The financial support from parents, often referred to as the Bank of Mum and Dad, averaged $40,000 to assist with deposit growth, according to property expert Andrew Winter. He noted that the Federal Government’s new 5 percent deposit scheme could provide further relief to families.
Mr. Winter emphasized the sacrifices many Australians are making to enter the housing market. Research indicated that 8 percent of respondents had postponed starting a family to save for a deposit. Additionally, around 20 percent took on side hustles, and 5 percent secured second jobs to accelerate their savings.
Debt remains a significant issue for many. Approximately 1,500 respondents reported having credit card debt, with the average weekly petrol expenditure at $56.47. Alarmingly, one in five individuals has not switched their energy provider in over ten years, with the median quarterly energy bill reaching $350.
Emma Lincoln, 29, and her fiancé, Dan Colby, recently relocated to Adelaide from Melbourne. While they currently rent in Greenacres and are satisfied with their situation, they hope to purchase a home within the next few years. Lincoln noted that house hunting in Adelaide presents unique challenges, primarily due to the lack of listed prices compared to Melbourne.
“Agents in Adelaide generally don’t list prices, which makes it more difficult to assess a home’s value,” she explained. Despite the price differences, she acknowledged that homes in Adelaide are generally more affordable than those in Melbourne, though the variety of property types is less extensive.
As the housing market continues to evolve, the findings from this report reflect the ongoing challenges faced by Australians in achieving home ownership and managing everyday expenses. The interplay of optimism about the economy and the harsh realities of financial pressures paints a complex picture for the future of housing affordability in the country.
