June 20, 2011
Generation Y may yet cast off their slacker image, with new research indicating those born between about 1982 and 2001 will lead the Australian housing market out of the gloom and into a new era of prosperity.
According to KPMG social demographer Bernard Salt, the current slump in the market is just a prolonged hangover from the Global Financial Crisis. Salt predicts the market will recover with gusto by 2012, and that by 2014 the bleak economy will be well and truly behind us.
And Gen Y will be leading the charge. Salt’s studies have led him to believe this group has not been as psychologically affected by the collapse of the world’s economy as other demographics. While Gen Xers and Baby Boomers have embarked on a post-GFC belt-tightening regime – retreating from the property market across the globe – much of Gen Y was unmarried and unencumbered during the crisis and therefore spared many of the harshest impacts.
Salt believes Gen Y is poised on the edge of entering the property market in earnest. And, if he’s right, it will be just in time, with first homebuyer participation recently falling to 15.8 percent of all home finance.
As Gen Y decide it’s time to grow up and stop “pretending to be the people from Friends”, Salt says they will be pushed into property ownership that will stimulate the market.
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