Young people that marry later, rent for longer
As Australians tie the knot and have kids later in life, they are renting for a longer period of time said Matthew Lovering of Australian Housing and Urban Research Institute.
The stats showed the number of 25-34 year olds purchasing a home fell by nearly 20% points from 61% in 1981 to 42% in 2011–12.
In comparison, the average age for first marriage has risen from 26.9 years for men and 24.7 years for women in 1992 to 29.8 years for men and 28.1 years for women in 2012.
Lovering said that married couples are more likely to buy a house together than unmarried couples. "Indeed, for those aged 25–44 being legally married (as opposed to defacto marriage) increases home ownership rates by 25% points.”
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Lovering explained couples also stop renting and buy a home when planning for the birth of their first child. As the average age of first-time mothers has risen from 27.5 years in 1990 to 29.1 years in 2012 this has also contributed to young people renting for longer.
"A survey in 2006–07 of over 2600 Australian householders revealed that of respondents who had children and had bought a home at some point in their life, 67% did so before the birth of their first child."
Another major reason for the fall in the number of young adults buying homes is increased housing unaffordability, "which can be seen in the increased ratio of house prices to the annual income of first home buyers," said Lovering.
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