Rental-Insights-A-COVID-19-Collection - Flipbook - Page 43
RENTAL INSIGHTS:
ASPIRING HOME OWNERS
What is the relevance
to Australian policy?
Most private renters see themselves
moving home in the near future—within
1 or 2 years. Although this undoubtedly
reflects the short term and transitory
nature of renting privately, it also presents
an opportunity for some renters.
A high proportion of renters aspire to
be home owners, there is a clear culture
of saving money, and aspiring to live
in better locations and change tenure.
People who worked from home during
the pandemic were much more likely
to see themselves moving soon, and
potentially into home ownership. But
are these aspirations realistic, and
what are the implications for policy?
There is some evidence of realism in
respondents’ answers. For example,
the respondent-stated probability of
entering home ownership drops away
for people who do not think they will
move in the next 1–2 years. It was also
lower for renters who were unable
to save.
However, the idea that 35 per cent
of people intending to move within
12 months believe they will become
home owners strongly suggests that
many are unrealistic. It takes the typical
new home owner around 5 years to save
the 20 per cent deposit needed to enter
home ownership.
Strong demand for recent products
such as the NHFIC’s first home loan
deposit scheme, Homestart and
Keystart Finance loans, and newbuild ‘rent to buy’ options show that
the market is wide open for more
innovation, and plenty of frustrated
demand from private renters aspiring
to become home owners.
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A high proportion of
renters aspire to be
home owners …
Reasons given for intention to move house
80%
Intend to move within 1 year
Intend to move within 2 years
Intend to move within 2-5 years
60%
40%
20%
0%
Home is inadequate
for working from home
Can save or invest
after paying rent
Moving for better
location
Moving because rent is
too high
Intended timing of house move for renters
100%
80%
All renters planning to buy a home
Renters with JobSeeker/Keeper planning to buy a home
Renters requiring future financial assistance but aspiring to buy a home
60%
40%
20%
0%
Intend to move within 1 year Intend to move within 2 years
Intend to move within 2-5
years
