The magnificent coastline, free-spirited lifestyle, and amenities started to weigh less for the young Aussies as they struggled to cover their basic expenses. The salary can’t keep up with the effects of rent, inflation, and climate change. Therefore, fresh graduates and young families are seeking an alternative country to leave the life of counting every dollar and being in debt for decades.
4 Reasons Young Aussies Are Seeking a New Country to Move in
1. Staggering Rental and House Price
Australia's 3.6% inflation and exorbitant rent make it quite impossible for young professionals or fresh graduates to find a comfy rental - let alone be a homeowner. To explain how bad the rental crisis is, about 2.5 million Aussies moved in with family or friends in 2023. On the other hand, top job hubs like Sydney saw a staggering 15% rent raise in the last 12 months - $1,350-$1,450 houses in Sydney cities are either mouldy, full of cockroaches, or look too unhygienic to live in. Overall, AU's median rent reached $627/week, an 8.5% YoY increase.
Similar to rents, homeownership has become a hurdle for the Aussies. Even high-earner millennials can't afford an apartment on the outskirts of metros as the property value increased by 33.9% since 2020. Followed by the mortgage and inflation situation, it takes 11.4 years for an Australian to save up for the 20% deposit - unlike 7 years in 2002.
Source: Home Loan Experts
The rental and housing crisis became dire for young Aussies because the government plans to curb energy bills and rent have failed so far. The Reserve Bank of Australia's (RBA) fight against inflation didn't ease the living conditions for fresh graduates or junior-level workers - making them search for a new country for affordable living.
2. Tech Employment Opportunities
Although the Australian tech industry expanded in the past decade, it's still a far cry from US tech, home of FAANG (Facebook, Amazon, Apple, Netflix, Google), Intel, Tesla, and many more. The recent slump of tech companies makes the AU market challenging for young tech professionals; 88 tech companies were delisted from 2019-2019 instead of 79 new listings. Also, the Australian tech sector has seen the most global and local indisposition in recent times, with start-ups receiving $3.5 billion from VCs - a massive decrease of $7.4 billion from 2022.
What’s even worse is that current Australian salary trends show individuals from mining and manufacturing earn the most, with the highest earners in the 45-54 age range. As Australia’s capital cities house most of the top tech jobs from big league companies such as Atlassian, Canva, and Employment, the young professionals have difficulty mending necessities with moderate salaries due to exorbitant living costs.
In contrast, the US tech conglomerates started to shift headquarters to rural areas and affordable cities (Tesla Gigafactory in Austin, Texas) and promote remote work. Thus, the salary, living costs, and plethora of options in the American technology sector make young professionals relocate there.
3. Tertiary Education
Australia's college-level education has significantly improved in the past decade, yet the US still takes the crown regarding world-class research, funding, innovation, and opportunities. US tertiary education incorporates Nobel laureates and tech CEOs to cater to the world's best minds, while government sponsorships and private research grants come in billions of dollars. Moreover, the college entry assessment is far better than the rest of the world, as it prioritises extracurricular activities and intellect more than GPA and scores.
The American “free ride” education is a rarity in Australia; most AU universities offer 30%-40% funding, while the fully funded degrees are highly competitive. In contrast, the US education system disburses 1.7 million scholarships per year, totalling USD46 billion. The Ivy League colleges, tenure facilities, and internship opportunities during summer break at tech giants draw the Australians looking for an education haven.
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Even families with high schoolers are shifting towards the North American region because of the college towns and technical schools to ensure premium education opportunities. Considering the University's reputation and placement at affordable locations, the influx of Aussie students will be higher.
4. Direct Impact of Climate Change
Australia's scorching heat and associated costs are making the lives of low-income and middle-class residents harder; an average household spends 2.5%-3% of its income on energy, and the spending is 10% for a low-income one. The utility bills don't seem to decrease as 2023 was the eighth hottest year recorded, and the temperature is forecasted to keep climbing.
The heatwaves cause more problems for the Aussies, such as extended droughts, bushfires, water shortages, storms, and rainfall. As these natural events directly impact agriculture, food prices also increase - making the young professionals invest most of their salary on basic needs. In the last 12 months, 21% of AU households faced severe food insecurity; floods or droughts caused 19%.
The tropical storms endanger the entire Australian population, as 90% of the residents live along the coast. To ensure safety during storms and cyclones, citizens must pay thousands for insurance, emergency supplies, and other damages. The Southern AU is at risk of long stretches of droughts, while the northern regions have flood risks. So, the rapid environmental changes are putting a premium on the Aussies, and they have started to look for locations without the chance of frequent natural calamities.
Which locations will be suitable for Young Australians?
Since Aussies are known for having a fun, laidback, and seaside lifestyle, the coastal US cities and towns will be perfect for them as they have the same language and culture. Unlike freezing cold Northern states, the southern and east coast states will be ideal for Australian migrants as they mimic AU weather and eccentric beachside living.
Residents of the coastal parts of Queensland can find solace in moving to Florida as both locations have miles of magnificent beaches, world-class entertainment, and year-long sunshine. However, the houses are high-end and go over millions depending on the amenities and landscape.
East Coast state Maryland should be the perfect option for young Aussies on a budget who want proximity to the Capital, Washinton, or city centres besides the beaches. They can buy an apartment unit at the best places in Ocean City, Maryland, near schools, parks, and economic zones without breaking the bank, as the studio apartments start from $120K.
Moving to a new country and settling down is very challenging for a person. But the Australians are picking countries where the cost of homeownership and comfortable living aren’t unattainable. Aussie expats are finding the silver lining in how the relocation improved their overall living conditions - inspiring more of the young generation to leave the country for better opportunities.
