Housing crisis: Aussies fear they’ll never own a home

A growing number of Australians believe they’ll never own their own home, prompting calls for drastic government action to boost housing affordability.

A Finder RBA cash rate survey of 34 experts and economists revealed a grim outlook, with more than one in three (35 per cent) Aussies convinced home ownership is out of reach.

High prices, rising borrowing costs, and the struggle to save a deposit are to blame, according to Finder’s head of consumer research, Graham Cooke.

“Record prices, steep borrowing costs, and saving for a deposit are locking people out,” Cooke said.

“In many suburbs, even a six-figure salary won’t comfortably cover a mortgage.”

Experts surveyed were asked what the most effective government action would be to make housing more affordable. The overwhelming consensus? Increase housing supply.

“Build, baby, build,” declared Kyle Rodda from Capital.com.

Echoing this sentiment, Stephen Miller from GSFM simply stated, “Supply! Supply! Supply! Through easing restrictions on building.”

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A large number of Aussies believe they will never afford a home in their lifetime.

Mala Raghavan from the University of Tasmania emphasised the need for government to “play an enabling role” by streamlining planning and zoning regulations, investing in infrastructure, and offering incentives for affordable housing projects.

While some experts suggested limiting immigration to reduce demand, the primary focus remained on addressing the chronic undersupply of housing.

Noel Whittaker from QUT acknowledged the difficulty, noting the “huge bottleneck” and bureaucratic hurdles hindering development.

The survey also highlighted concerns about job security, with 12 per cent of Aussie workers feeling insecure in their current roles.

Brisbane financial guru Noel Whittaker says “huge bottleneck” and bureaucratic hurdles were hindering housing developments. Picture Lachie Millard

Almost half (49 per cent) of Australians are living paycheque to paycheque.

A majority of experts (80 per cent) expect unemployment to rise in the next 12 months.

Stella Huangfu from the University of Sydney anticipates a gradual rise in unemployment, potentially reaching the mid-4 per cent range.

Stephen Miller from GSFM suggested that the private sector is not strong enough to compensate for fading non-market sector employment.

Despite these concerns, Noel Whittaker from QUT believes the unemployment rate will stabilise, citing a “massive demand for labour” and numerous planned projects.

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