Buying a house is seen to be less feasible than starting a business by Millennials, a new study has found, which also identified the issues of greatest importance to this generation of consumers.
According to The Australian Millennial Report 2019, co-authored by Mark MacSmith and Tom McGillick, home ownership is perceived by Millennials (aged 19 to 36) to be less attainable than starting a business.
The prospect of purchasing property to live in five years into the future received a 5.62 attainability rating (where 0 indicates “impossible” and 10 indicates “definitely achievable”), compared to the prospect of launching a business, which received a rating of 5.85.
On the other hand, purchasing an investment property in five years’ time was seen as more attainable, with a 6.72 rating, according to the study, which surveyed more than 1,200 Millennials.
Compared to sentiments in 2018, Millennials were found to be more focused on saving for property this year, with around 7 per cent indicating that they are living with their parents while saving for a house deposit. This is up from roughly 2 per cent last year.
The proportion of respondents who are renting while saving for a house deposit increased significantly from about 4 per cent last year to about 13 per cent this year.
Further, a greater proportion of respondents, around 7 per cent, were found have a mortgage on their own, up roughly 1.5 percentage points from 2018. A similar rise was seen in respondents sharing a mortgage with their partner, from around 18 per cent last year to 20 per cent this year.
While the prospect of owning property was the most important indicator of personal optimism among Millennials, an increasing number of this cohort identified “paying off my mortgage” and “saving for a home deposit” as their biggest financial challenges, up from 13 per cent to 15 per cent and from 13 per cent to 14 per cent, respectively.
The study also revealed that Millennials have less trust towards banking and finance businesses (5.87) than supermarkets (7.25), energy providers (6.1) and phone and internet providers (6.16).
However, banking and finance providers are perceived to be more trustworthy than insurers (5.76) and the media (5.63).
Overall, the cost of living was identified as the most important issue for Millennials ahead of the federal election in May, ahead of concerns about the economy, housing affordability, and saving for a house deposit.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.