Australians are sick of renting and want in on property

Key points:

• Australians are keen to avoid rising rent and home prices by buying ASAP 
• 51% believe rent is unaffordable 
• National home prices are up 7.6% since January 2023
• Almost a third of Australians aren't aware of alternative pathways to homeownership 
• Australians are cutting back on their expenses and taking on second jobs or freelancing to save for a deposit.

New research shows Australians are keen to get a foot on the property ladder as soon as possible, citing the cost of rent and increasing home prices as the impetus.

And some are going to extremes to get it done.  

Almost half of Australia’s first home buyers in 2023 said their main motivation to buy was to escape the rental market, with 51% believing rent is not affordable, according to Helia’s latest Home Buyer Sentiment Report. 

The report also found that 43% of first-time buyers in 2023 want to get a foot on the property ladder before home prices rise any further. 

With the CoreLogic Home Value Index showing consistent monthly upticks in national home prices (up 7.6% since January 2023), it’s not hard to imagine there’s a bit of housing FOMO at play here.  

Despite the sentiment towards homeownership growing, a staggering 30% of Aussies aren’t aware of alternative pathways to buying their first home, according to Helia’s report. 

These alternatives include: 

• Government first-home buyer schemes 
• Taking out lenders mortgage insurance (LMI)
• Shared equity schemes 
• Co-ownership (i.e. buying with a partner or friend) 
• Rent-to-own schemes 
• Deposit gap loans.  

Instead, they’re turning to alternative methods of saving up for a deposit. 

Australians work two jobs, cut back on health treatments, cancel gym memberships to afford housing costs 

The report from Helia found aspiring homebuyers are sacrificing expenses that aren’t strictly necessary, just to save for a deposit. 

Australians say they are cutting back on: 

• Dining out (54%)
• Takeaway food (54%)
• Takeaway coffee (48%) 
• Medical/wellness treatments e.g. physio and chiro (23%) 
• Gym/fitness memberships (21%). 

According to the report’s findings, prospective first-time buyers also say they are saving for a deposit by: 

• Taking up overtime at work (32%) 
• Taking on secondary jobs e.g. freelance or gig-work (24%).

Almost a quarter of prospective homeowners choose to live with their parents (23%) to save up. A further 14% are considering it – with 42% of those believing they’d need to return to the nest for 3 to 5 years. 

Financial help from family is becoming more commonplace too. 

Around 2 in 5 first-home buyers in 2023 reached out to the ‘Bank of Mum and Dad’, according to the report, receiving financial assistance from their parents or other family members to help fund their purchase. 

The most common kind of assistance involves family chipping in for the deposit (60%) or signing on as guarantors (29%).

A good low home loan rate can help keep costs down 

While saving for a deposit in the current property market is a difficult hurdle to clear, ensuring homebuyers keep their mortgage repayments affordable is the next step. 

Compare home loans to find a mortgage with a low interest rate and consider which home loan features, like an offset account, can help keep housing costs down. That way you can afford the odd Thai takeaway night, or a visit to the physio, without worrying too much about your finances. 

Get started by looking at the featured home loan rates below, or check out the best home loans in 2023 for some award-winning products.