Two minute read.
- 25 to 44 years
- 3.3 people per household
- 36% no children at home
- 30% couples or living alone
- A projected 26% of total new housing demand over next decade (in this case, for the Brisbane outer suburbs)
- Portfolio work, not long-term work commitment
- Partnering later
- Parent as friends
- Sex, less stigmas, very little tradition
- Fewer children
- In short, options galore – so it is not until their late 20s/early 30s to early 40s that many buy their first home
- Room to grow
- Property improvement
Preferred housing options:
- 10% to 20% - apartments (inner city)
- 20% to 30% - townhouses/duplexes and similar multi-housing products (middle-ring suburbs)
- 50% to 70% - detached-based homes (mostly outer suburbs)
What most buy?
- A property that can be improved – so they often buy an existing dwelling – in fact, four out of five 1st home buyers buy an older established home
- What also appeals is a property that is capable of taking in a tenant/s to help pay the mortgage
Something to think about
Given that first home buyers are looking for a home they can improve – and when it comes to a middle or outer suburban setting – our discussions with this market segment suggest that a new smaller, yet high quality house (being either a one or two-bedroom property) has considerable appeal.
The key is that this home is sold with an approved building extension/improvement plan and costing in place – so that they can expand the house, within a set time frame and budget.
This arrangement allows a young couple to afford a home now – maybe gain some additional rental income over the short to medium term - and expand (or improve) it as their needs change and/or finances improve.
- Also read:Exploring the link between population growth and property prices
- Also read:Australian unit market update June 2022
- Also read:Here is what we have been buying over the last 12 months
- Also read:EXPLAINER: New home buyer scheme helps frontline workers get into the property market
- Also read:Number of profitable property resales takes first dip in 18 months | Corelogic Pain and Gain Report