Gen Y hoping for a housing bubble
First home buyers are banking on a property collapse to work their way into the housing market.
According to ABC’s Four Corners, Gen Y housing hopefuls finding themselves priced out of the market are looking to a property price crash as their only hope of accessing housing.
Prospective Melbourne homebuyer Jules McKendry told the program she and her partner have found themselves outbid by property investors over the past year, despite having put together a $150,000 deposit.
“We are being outbid by international buyers or investors. The two of us both earn quite a decent wage and we have saved quite a lot and I still find that we are struggling to get into the market,” McKendry told the ABC in a program broadcast last night.
McKendry said many Gen Y homebuyers are hoping for a precipitous decline in house prices.
“For a lot of people in my generation we wouldn’t really care if the property market crashed because it would mean a lot of us could afford to get into the market. It’s not something I want to see, but I definitely wouldn’t get any complaints about it.”
The program also spoke to Millie and Ben Robson, a couple who have moved back into their parents’ home with their young daughter to avoid paying rent while saving a deposit.
“We’ll just try and put away as much money as we can and see where we’re at when this bubble bursts,” Millie Robson told the ABC.
The Grattan Institute’s John Daley told Four Corners the gap between housing prices and the average income was increasingly pricing Gen X and Gen Y out of the market.
“About 60% [of 25 to 34-year-olds used to] own a house. Now it’s less than half,” Daley said.