More recently we’re noticing that depending on your age, attitudes and beliefs, the issue of housing affordability is likely to be viewed very differently.
The recent Perceptions of Housing Affordability Reports, split respondents into three categories by generation. Millennials are aged 18-34 years old, Gen X are 34-49, whilst Baby Boomers are aged 50-64.
There’s a takeaway message here that from the outset, highlights differences in levels of property ownership across generations. 34% of millennials currently own properties, compared to 64% of Gen X and 68% of Baby Boomers.
It may not come as too much of a surprise due to the amount of a mortgage they’re likely to have paid, but the Baby Boomers were the most likely to own a property outright – with 37% confirming this fact. 13% of Gen X and 9% of Millennials were found to own their own properties.
The Upside To Ownership
The Perceptions of Housing Affordability report carried out by CoreLogic, showed that whilst home ownership is a really important goal across all generations, the degree of importance tended to drop off with age. 96% of millennials interviewed reported that it was important, whilst 61% reported that it was a key life goal.
Of the Gen X participants, 87% stated it was important, with 53% claiming it was a very important goal. Lastly, 73% of Baby Boomers felt it was an important goal, and 40% said it was crucially important.
When it comes to housing affordability, concern levels were high across all generational groups. Of those who don’t own a property currently, 95% of millennials said that they were worried about whether they could afford their first home. 50% described themselves as being very concerned.
When comparing this with Gen X and Baby Boomers, the results were lower with age. 86% of Gen Xers were concerned, with 54% saying they were very concerned. Baby Boomers found that 45% of them were very concerned, and 72% were concerned.
According to the CoreLogic report, anxiety levels remained high even after the purchase of a property – with 91% of millennials, 77% of Gen Xers and 64% of Baby Boomers worrying that they won’t be able to afford their next move.
The report highlighted that the millennials felt less glum about the housing affordability for the future – with 29% suggesting that housing affordability is worse now than it will be in the future.
Obstacles To Housing Affordability
The survey highlighted that the perception of obstacles to housing affordability varied across the age groups.
Millennials found that they were most likely to find having the deposit for a house (49%), interest rates (44%), and loan approval (41%), to be the biggest difficulty.
Gen Xers found that stamp duty (48%) and foreign buyer influence (45%) were the most significant difficulties to overcome.
Baby Boomers identified foreign investors (31%) and stamp duty (29%) as being the biggest barriers to housing affordability.
What Are The Solutions?
There are several ways one can improve housing affordability. Millennials surveyed by CoreLogic were found to be most likely (68%) to believe that a high-paying job is the best thing to do when looking to buy a first home. Gen Xers and Baby Boomers followed behind with 58% and 49% respectively.
Stamp duty bothered Baby Boomers the most (80%) – who suggested that its removal or reduction would help first time buyers immensely. 69% of Millennials and 71% of Gen Xers agreed.
Baby Boomers were more likely than the other generations to feel that a reduction of migrants might help to impact on affordability in a positive sense (56%) – whilst 51% of Gen X and 47% of Millennials felt the same.