Rental-Insights-A-COVID-19-Collection - Flipbook - Page 42
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RENTAL INSIGHTS:
ASPIRING HOME OWNERS
ASPIRING HOME OWNERS
Chris Leishman
The University of Adelaide
Key findings
Many individuals and
their households have
experienced changes
in living conditions and
housing arrangements
during the COVID-19
pandemic; 18 per cent
of individuals who see
themselves moving home
in the near future are
also aspiring to become
home owners. However,
this rises to 30 per cent
for those who have had
to work from home
during the pandemic and
see themselves moving
in the next 12 months.
Are aspiring home
owners in a pandemic
being
XXX realistic?
XXX
Are people realistic about their
prospects of entering home ownership?
About 35 per cent of people who think
they will move within 1 year believe they
will become home owners, but this
drops to 28 per cent for people who
think they will move within 2 years, and
only 11 per cent who think they will move
within 5 years. This is also reflected in
responses about ability to save or invest
after paying current housing costs. Of
those who say they can, 26 per cent see
themselves becoming home owners.
Of those who say they can’t, this falls
to 15 per cent.
Who is most affected?
Why is it important?
But high rents and dwellings that
are unsuited to working from home
are much more important factors for
renters looking to move within the
next 12 months.
Two-thirds (66%) of all respondents
to this survey thought that they will
move home within the next 5 years,
and the majority of these thought that
their move would occur within 2 years.
Around a third of these individuals
thought that their current rent is too
high and/or that their rent might rise
in the future. However, they are also
aspirational in the sense that 55 per
cent cited wanting a better location
as the reason they will move home.
‘Many private renters remain
highly aspirational and view
home ownership as attainable’
A surprisingly high proportion of survey
respondents report that they are able
to save or invest money after they have
paid their housing costs (rent). The
proportion is almost 60 per cent and is
roughly the same for people who think
they will move in the near future and
those intending to move a bit later
(but within 5 years).
More people intend to move to get into
a better location rather than because
they are dissatisfied with the rent or
characteristics of their current home.
When we examine respondents who
are currently on JobKeeper, JobSeeker
or report that they may need further
financial assistance in the future, a
surprising picture emerges. More than
40 per cent also express the intention
to move within 12 months, and about
the same within 2 years. When we
compare this to the population of all
renters, the proportion is 54 per cent
(within 1 year) or 64 per cent (within
2 years). Thus, being reliant on income
support interventions has only modestly
reduced aspirations.
