Most Australians disagree rising house prices are “a good thing”
Will Watts and Hannah Price opted to fix their mortgage rate after stretching their budget in Sydney’s hot market. Picture: Bradley Hunter Source: News Limited
IT’S the great Australian dream: buy your own home, settle in and watch it grow in value to fund your retirement.
But stretched affordability has soured the dream for many.
A majority of Australians now think rising house prices are bad for the country, with exclusive new polling showing more than half the population disagrees with the statement that “rising house prices are a good thing for Australia”.
And the number of people who think rising house prices are good for Australia is a quarter of those who don’t like the development.
Surprisingly, even though they stand to gain the most from rising prices, older Australians are even more concerned about rising prices than people aged under 30.
“Even though as homeowners older generations tend to benefit from rising prices, parents are really worried about their kids capacity to enter the housing market,” the director at Ipsos, Rebecca Huntley, told News Corp Australia.
According to the Ipsos survey, 53.7 per cent of Australians disagree with the statement “rising house prices are a good thing for Australia”, with 27 per cent “strongly” disagreeing.
Only 13.2 per cent thought rising house prices were a good thing, with the rest ambivalent or “don’t know”.
Aussie home prices jumped 10 per cent last year thanks to record low interest rates, with the steepest rise in Sydney of 14.5 per cent. Prices in Sydney and Perth are now above their pre-GFC highs.
Australians in their thirties and forties are the group most worried about rising prices, followed by those aged 50 plus.
Young fathers, in particular, expressed concern in separate focus groups about their child’s future ability to buy a home. According to Dr Huntley: “Even though their kids were still very young, these young dads were already anxious about housing affordability in decades to come.”
“Property ownership has been part of our social compact. It’s been linked to our sense of what it is to be Australian.”
“The community understands housing prices are a problem and yet they don’t know what governments and consumers can do to change it in a way that won’t detrimentally effect those people who are relying on the capital in their home to fund their retirement.”, Dr Huntley said.
Two thirds of Australian households own their home, either with or without a mortgage, while a third rent.
Low income earners, along with single and divorced people, are also most aware of the pain rising prices can bring. Households with two incomes, including married or people living in defacto relationships, are most comfortable with rising prices.
People in cities – where price rises have been steepest – were more concerned than rural Australians about rising prices.
The survey of 1043 people was conducted last November.
PER CENT WHO DISAGREE RISING HOUSE PRICES A GOOD THING
AUSTRALIA TOTAL 53.7%
Aged 18-29: 50.8%
Aged 30-49: 55.8%
Aged 50+: 53.4%