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Seven in 10 young Australians believe that owning a home is more impossible to achieve, particularly due to the economic turbulence brought about by the COVID-19 outbreak.
ME Bank has released new research showing how the pandemic’s economic impact is being felt by the younger generation, wherein out of 1,000 Gen Z and Gen Y survey respondents, almost 70 per cent said that the “Great Australian Dream” of owning a dream home, finding a dream job and retiring at or before the age of 65 is harder to achieve for their generation.
Further, 82 per cent believe it was easier for past generations to achieve and 62 per cent fear that their children or the next generation will struggle to achieve it, according to the research.
Prior to the COVID-19 outbreak, 40 per cent of the respondents said that they were planning to purchase their first property. Today, 23 per cent have decided to delay this plan.
Where the Great Australian Dream once meant owning a house, working a dream job and retiring early, the new dream for today’s generation has become more practical, including paying the bills on time and “just having a stable income and good health”.
“I’m resigned to the fact that you need to be content with renting a decent enough apartment in the larger cities where more jobs may be found,” one Gen Y respondent said.
With the economic impact on young people being widely felt, the government’s recent budget included a variety of measures directly aimed at supporting young people enter the labour market. New programs include wage subsidies for new hires between the ages of 16 and 35 and increased funding for apprenticeships and traineeships.
Further, incentives and subsidies have been introduced for first home buyers to assist them into entering the property market.
“This is the first recession many young Australians have experienced and it will take some adjusting to,” according to Andrew Bartolo, ME general manager home loans.
Still, despite the supposed bargains available for first home buyers, as well as government incentives and support, ME Bank’s research found that 58 per cent said that the pandemic has made it harder to enter the property market, and 58 per cent feel that it is unlikely they will own their dream home.
More than half of the respondents also said that finding a dream job and retiring before 65 are highly unlikely, considering the current economic climate, and they may not have enough superannuation to support their future selves.
Additionally, as a result of COVID-19, 69 per cent are delaying major life goals, with close to half estimating it will take another one to three years to reach them.
“The reality is that some goals like travelling overseas or saving for a house deposit have sadly been put on hold while we navigate 2020,” Mr Bartolo said.
“The best thing young Aussies can do right now is not to lose hope, but reassess their goals, upskill the management of their personal finances and seek support when they need it.”
Mr Bartolo encouraged young people to reach out to professionals in order to be relieved of financial burden by being educated and establishing a risk-averse long-term plan, noting an abundance of helpful resources out there.
ME Bank has released new research showing how the pandemic’s economic impact is being felt by the younger generation, wherein out of 1,000 Gen Z and Gen Y survey respondents, almost 70 per cent said that the “Great Australian Dream” of owning a dream home, finding a dream job and retiring at or before the age of 65 is harder to achieve for their generation.
Further, 82 per cent believe it was easier for past generations to achieve and 62 per cent fear that their children or the next generation will struggle to achieve it, according to the research.
Prior to the COVID-19 outbreak, 40 per cent of the respondents said that they were planning to purchase their first property. Today, 23 per cent have decided to delay this plan.
Where the Great Australian Dream once meant owning a house, working a dream job and retiring early, the new dream for today’s generation has become more practical, including paying the bills on time and “just having a stable income and good health”.
“I’m resigned to the fact that you need to be content with renting a decent enough apartment in the larger cities where more jobs may be found,” one Gen Y respondent said.
With the economic impact on young people being widely felt, the government’s recent budget included a variety of measures directly aimed at supporting young people enter the labour market. New programs include wage subsidies for new hires between the ages of 16 and 35 and increased funding for apprenticeships and traineeships.
Further, incentives and subsidies have been introduced for first home buyers to assist them into entering the property market.
“This is the first recession many young Australians have experienced and it will take some adjusting to,” according to Andrew Bartolo, ME general manager home loans.
Still, despite the supposed bargains available for first home buyers, as well as government incentives and support, ME Bank’s research found that 58 per cent said that the pandemic has made it harder to enter the property market, and 58 per cent feel that it is unlikely they will own their dream home.
More than half of the respondents also said that finding a dream job and retiring before 65 are highly unlikely, considering the current economic climate, and they may not have enough superannuation to support their future selves.
Additionally, as a result of COVID-19, 69 per cent are delaying major life goals, with close to half estimating it will take another one to three years to reach them.
“The reality is that some goals like travelling overseas or saving for a house deposit have sadly been put on hold while we navigate 2020,” Mr Bartolo said.
“The best thing young Aussies can do right now is not to lose hope, but reassess their goals, upskill the management of their personal finances and seek support when they need it.”
Mr Bartolo encouraged young people to reach out to professionals in order to be relieved of financial burden by being educated and establishing a risk-averse long-term plan, noting an abundance of helpful resources out there.
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