Gen Y Finding It Harder To Enter Housing Market

Research has shown that Baby Boomers and Gen Xers are opting to stay in their homes longer rather than selling making it harder for generation Y to get into the housing market.

A Commonwealth Bank housing study has found that 44 per cent of Australian households have moved in the past five years compared to 73 per cent a decade ago.

Once people have found their dream home they are inclined to stay there.

This may be good for the Baby Boomers and Generation X but if they stay put in their homes then it puts real pressure on Generation Y to find their homes and at a reasonable cost.

The data also revealed that 15 per cent of home owners without a mortgage had sold their primary residence, while in 1999 the number was closer to 60 cent, and 42 per cent of mortgages changed their address a 25 per cent drop.

By staying in their homes for longer, makes it very hard for renters and people wanting to buy or move out of their homes and find the place that they want.

According to the Australian Bureau of Statistics Housing mobility and conditions report single parents were the most frequent house movers, shifting three or more times in five years. Couples with no children would be most likely to stay put.

The Australian reported that auction clearance rates in Sydney reached 71 per cent over the weekend, while Melbourne clearances reached 76 per cent.

This information comes in spite of the latest interest rate rise and points to a boost in confidence for middle and high end buyers.

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Published on November 11-th, 2009 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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