First Home Buyers Report for 2022
Finder's First Home Buyers Report explores the attitudes and behaviours of new homeowners in a rapidly shifting housing market.
Key takeaways
- Most 2022 first home buyers preferred houses 70% over apartments, with 1 in 8 considering interstate options.
- Financial pressures were evident as 37% of 2022 buyers exceeded budget and 1 in 2 faced unexpected costs.
- The report reveals 2022 first home buyers faced an affordability gap with prices growing 276% since 2002.
First Home Buyers Report 2022
Australia's housing market has boomed over the past 2 years and has experienced record growth despite the pandemic. However with prices forecasted to fall through 2022 and home loan rates rising for the first time in over a decade, we may soon witness a market downturn. Owner occupier lending is already starting to slow, particularly among first home buyers who typically have lower budgets and are more sensitive to house prices.
Finder's First Home Buyers Report shines a light on the attitudes and experiences of first home buyers. We conducted a survey of 1,001 first home buyers to find out their preferences, fears and budgeting decisions, and we also draw on our First Home Buyer Report 2021 to compare how the behaviour of new home owners has changed over the past year.
Download the First Home Buyers Report 2022.
Key first home buyer statistics
- First home buyers prefer houses (70%) to apartments (16%)
- 1 in 8 buyers are searching interstate
- 1 in 6 gen Z buyers are buying an investment property
- The number of buyers who plan to renovate immediately has halved since 2021 (22% to 11%)
- 37% of buyers exceed their budget
- COVID-19 lockdowns helped 1 in 4 first home buyers save
- Nearly 1 in 3 are buying now because they fear rising property prices
- 1 in 2 buyers face unexpected costs during the purchase process
- 37% of buyers will be worried if their interest rate rises
- Qualifying for a loan and having bad neighbours are buyers' top fears
Property prices have consistently outpaced wages
Property affordability has been a hot topic over the past 2 years, particularly when it comes to first home buyers. Since 2002, residential house prices have grown by 276%, while wages have increased by just 77%. In 2021 alone, house prices grew by 28%, compared to just 1.5% for wages. The growing gap between wages and house prices highlights the challenge today's first home buyers face in saving a deposit and financing a mortgage.
Change in wages and property prices since 2002
Wage price index and residential property price index using a baseline of March 2002.
Download the full report to read more.
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