Nearly 90% of Australians see the Great Australian Dream as no longer achievable, according to new data from Mortgage Choice.
Earlier this year, Mortgage Choice, together with Core Data, asked more than 1,000 Australians for their thoughts and opinions on home ownership and whether or not it remains the ‘Great Australian Dream’.
According to the report, otherwise known as the Evolving Great Australian Dream, 87% of surveyed respondents said it is becoming increasingly difficult to achieve the ‘traditional dream’ of home ownership.
“The Great Australian Dream has traditionally been seen as owning a free-standing house on a quarter-acre block in the suburbs,” Local Mortgage Choice Rhye Livingstone said.
“While the research clearly shows that the concept of owning a property continues to be ‘the dream’ for many Australians, it would seem the traditional ‘dream’ is evolving.
“Australians no longer consider owning a free-standing home as the ‘Great Australian Dream’. Instead, they believe the ‘dream’ has evolved to include any style or type of property.
“Over the last few years, we have seen a dramatic surge in the number of people embracing apartment living. And, when you look at the level of apartment construction taking place across the country, it is likely that we will continue to see more Australians calling apartments ‘home’.”
Data from the Australian Bureau of Statistics found approximately 52,000 apartments were approved for construction in 2011. Last year, that number had jumped to in excess of 100,000.
“While a lot of Australians are happy to buy and live in an apartment, others are only choosing this property purchasing path because they believe they cannot afford the traditional dream of a free-standing home,” Mr Livingstone said.
As per the research, the vast majority of Australians fear they may never be able to buy the type of property they desire.
“We need to help Australians who are struggling to get their foot on the property ladder, find a way to achieve their dream of home ownership.”
Mr Livingstone said it was time for the federal and state governments to work together to give serious thought to the issue of housing affordability and collectively seek to address the problem.
“To date, we have heard a myriad of suggestions from both sides of parliament in relation to what should be done to address the issue of housing affordability,” he said.
“Many of the suggestions have centred around tax concessions; extended first home owner grants; and allowing first home buyers to use their super as a home deposit.
“To my mind, such initiatives may well provide some relief and temporarily treat some of the symptoms associated with housing affordability, but they do very little (if anything) to treat the root cause.
“Property price growth is fundamentally driven by supply and demand. When you get an ever increasing proportion of the population seeking to live in the urban centres for direct access to employment opportunities, education and other amenities, it is only fair to assume that we will see these centres come under greater supply pressure.
“Structural changes across the country are needed. We need to see further opportunities for employment in regional areas. In addition, we need better infrastructure to enable a faster connection between our suburban/regional areas and our urban centres. Finally, we need to see continued development within the urban areas.
“Only when all of these initiatives are in place can we truly start to treat the root cause of the housing affordability crisis.
“Home ownership should be achievable for all Australians, and as a nation, we should do what it takes to make that a reality.”
For further information, or to arrange an interview, please contact:
Mortgage Choice Frankston
Ph 0459 958 893
About the survey
Global market research consultancy Core Data was commissioned by Mortgage Choice to conduct the Evolving Great Australian Dream survey. The online survey was conducted earlier this year and completed by more than 1,000 Australians.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.
Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.
Since that time, the company has grown and developed into a fully fledged financial services provider.
Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.
Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.
Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Recent recognition: 2015, 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.