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Millennials forced to put off key life events

Millennials forced to put off key life events

Australians are delaying major life events until later in life than they did a decade ago, according to Roy Morgan Research.

An analysis of long-running trends, including moving out from the family home, living in shared housing, renting, taking out a mortgage or owning one’s home, has shown that they are all occurring at a later age.

Aussies living at home

Age Bracket% in 2007% in 2017
18-195458
22-242428
25-291216

This trend of increasing amounts of young Aussies living at home has directly affected key indicators, according to a statement released by Roy Morgan Research.

“As Australians delay moving out and put off buying a home, and getting a home loan, an increasing proportion of Australians are now renting – now the largest proportion of Australians aged 25-34.”

This has led to more and more young Australians living in shared housing. 22-24 year olds are the largest age bracket living in shared housing, unchanged since 2007. However, this now encompasses 31 per cent of the population, compared to 26 per cent in 2007.

No doubt, record high property prices with no signs of dropping are contributing to these results.

Death of the Mortgage

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While 36 per cent of 25 – 29 year olds (down one percentage point since 2007) are renting, there has been an interesting increase in older age groups renting.

“In 2007 more Australians aged 20-24 had a home loan than were renting. Now 42 per cent of 30-34 year olds are renting,” according to the Roy Morgan release.

There are also more 35-39 year olds who are renting, increasing almost ten percentage points over the decade.

More Australians aged 45-49 are renting (23 per cent) than own their own home (18 per cent). However, 52 per cent of this age group have a home loan, which may correlate to the recent rise in ‘rentvesting’.

These results signify a major social shift from 2007, where 28 per cent of 45-49 year olds owned their own home and only 18 per cent were renting.

Roy Morgan Research has also found that an increasing proportion of home buyers are now in their 40s.

“Clearly the later in life one takes out a home loan, the later in life it will be when one comes to own the home outright,” explained Roy Morgan Research.

“Now only 12 per cent of 40-44 year olds own their home (down from 18 per cent in 2007), and just 18 per cent of 45-49yr olds own their home (28 per cent in 2007). This trend is evident through older age groups.

“It now takes until Australians are aged 60-64 years old, almost at retirement age, for a majority (60 per cent) to own their home whereas in 2007, 55 per cent of 55-59 year olds owned their home”.

Why are key life events being delayed?

Roy Morgan Research CEO Michele Levine believes that “long-term employment trends and an increasingly expensive housing market are delaying the traditional Australian dream of owning one’s own home”.

“Important life-changing decisions are happening later in life than they used to – even compared to just a decade ago.

“The changing shape of Australia is driven by two demographic trends – millennials are staying at school or in education longer and staying at home or in shared accommodation while they do that; Baby Boomers, rather than paying off homes as quickly as possible, are using the equity in their homes to renovate, upgrade, invest or finance whatever other activities that want to engage in.

“The increasing price of housing relative to incomes – especially among younger Australians, is only part of the story,” said Ms Levine. 

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