Boom or bust: Gen Y still wants the Great Australian Dream

The global financial crisis has forced Gen Y to defer - rather than re-think - buying a home, social researcher Dr Rebecca Huntley told the 6th National Housing Conference in Melbourne this week, hosted by the Victorian Department of Human Services Housing division and the Australian Housing and Urban Research Institute (AHURI).

“The economic downturn has reaffirmed Australians deep-seated belief in home-ownership, rather than dampening our fixation,” said Dr Huntley, director of Ipsos Australia and author of The World According to Y: Inside the New Adult Generation.

“Low interest rates, government support, rental insecurity and a loss in superannuation have reinforced our belief in bricks and mortar.”

Dr Huntley said finance, lifestyle and transport are the major reasons for Gen Y deferring buying their first home. 

“Gen Y likes the idea of owning their own house or apartment, but would prefer to be financially and commitment free to go out on the weekends or travel overseas. They may also defer home-ownership if they can’t afford to buy in a location that’s close to their friends, family, work, bars and cafes,” she said.

“Home-ownership is viewed as an important marker of adulthood, but Gen Y feel they’ve not had the same access to the housing market as their parents and older generations. 

“There is also an expectation their parents will help get them into the housing market, however the capacity of the parental generation to do this is constrained by many forces. This can create certain generational tensions about housing.” 

Gen Y also often waits for forces to collide before buying a home.

“They normally wait for the ‘lotto syndrome’, which is when someone close to them dies and they can afford a deposit, or when they decide to have a baby and people expect a lifestyle change.”

Australians are fixated on owning their own home, said Dr Huntley. 

“It’s interesting to compare Australia to countries such as Italy, where people are nowhere near as fanatical about home ownership. Most Australians love the thought of being able to nail something to a wall. We have deep-seated historical, cultural, emotional and financial reasons for wanting to own our own home.”

Dr Huntley explored what Australians really think about renting and owning their own home at this week’s 6^th National Housing Conference.