First time home buyers more likely to buy in outer suburbs, says NAB

houses-in-regional-australia close to water

More first time home buyers are purchasing in outer suburbs, particularly in NSW and Victoria, new NAB data shows.

Even amidst some of the strictest lockdown restrictions first timers were involved, with a 77% lending surge of first time buyers compared to 2020, said NAB.

Andy Kerr, NAB executive home ownership, correlated the increase of people buying in outer suburbs to the growth of working from home in the last 18 months. 

“This has fundamentally changed home buyer options with locations based on hybrid working, opening up suburbs that haven’t been available in the past with the daily commute,” he said.

Regional spots continue to draw some buyers however.

“While activity has slowed in regional areas in QLD and WA from the first few months of this year, in NSW and Victoria it’s clear the sea and tree change continue to be incredibly popular for first-time buyers,” said Kerr.

Switching back to city locations

Typically houses further away from metro areas tend to be cheaper, which is why many first time home buyers try to break into the market in those regions. Recently, the Australian housing market’s total worth broke $9 trillion, but that flood of money hasn’t stopped new home buyers going out to find their dream homes - be it in the suburbs or out in the country.

While we’ve seen an increase in city dwellers migrating to regional areas since the pandemic, between May and August this year, buying activity in metro areas has grown compared to regional, said NAB.

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