Our Gen: Hope for young Victorians in harsh housing market
YOUNG Victorians are defying surging property prices to stay in the suburbs of their choice. And it’s not all bad news if they want to own their home. Here are the suburbs millennials can’t get enough of.
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YOUNG Victorians are defying surging property prices and staying in the inner-city, and Carlton is their suburb of choice.
Population data reveals that one in three Carlton residents were aged 20-24 at the most recent Census. The inner-city suburb was the most popular among the age group from 2006 to 2016, despite skyrocketing property prices.
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The median house price in Carlton jumped from $510,000 to $1,350,500 over the decade, according to Real Estate Institute of Victoria data, while the median unit price rose from $225,875 to $355,000.
Rents for houses and units increased 46 per cent and 35 per cent respectively between 2008 and March this year.
Hocking Stuart senior leasing consultant Courtney Walker said Carlton was a popular suburb among university students who also wanted the benefits of living close to the city, cafes and restaurants.
“It’s close to the universities and there are plenty of terraces that turn into great sharehouses,” she said.
“And when you have a five-bedroom house shared between four or five people, it can make it quite cheap for people.”
Ms Walker said Australian students typically preferred larger sharehouses while international students often favoured high-rise apartment buildings at the Swanston St end of Carlton.
Carlton was followed closely in popularity by a string of suburbs near universities — Clayton, Caulfield East and Notting Hill near Monash, Parkville near Melbourne, Burwood near Deakin, and Flora Hill, in Bendigo, near La Trobe.
Southbank, Melbourne and North Melbourne rounded out the 10 preferred suburbs.
The data also showed that young people were shunning seaside country towns, with just under 2 per cent of the population in Mallacoota, Sorrento and Metung aged 20-24.
Inverloch, Point Lonsdale, Indented Head and Port Fairy all recorded 2.5 per cent or below.
Secret Agent managing director Paul Osborne said that part of Carlton’s charm was that it held on to university students after they graduated.
He said its student accommodation kept prices relatively affordable, unlike other inner-city suburbs such as East Melbourne, and its “flair” also attracted corporates and young families.
“The city is becoming more and more of a magnet as somewhere where people want to live and the top end is a real epicentre of academia with the universities,” he said.
“The reason why Carlton is different is because people realise they are not going to be at university forever but that they may then work in the city. Carlton has low-income, social housing, accommodation that is student-only, apartments occupied by corporates and then terraces that can be for families or downsizers. That is what people like.”
@moniquehore
HOPE FOR YOUNG VICTORIANS IN HARSH HOUSING MARKET
YOUNG Victorians are finding it harder than ever to break into the housing market, forcing many to consider long-term renting.
With increasing house prices and slower wage growth, those looking to buy a property face a harsh reality.
The average house value in Victoria in 1993 was $103,687 while today the average house value has soared to $696,724.
That’s an increase of more than 670 per cent.
Comparatively, the average weekly wage 25 years ago was $610.9 while today that number sits about $1,450, an increase of 240 per cent.
While interest rates remain low and mortgage repayments similar to the cost of the monthly rent bill, financial experts say many young people fall at the first hurdle — saving for a deposit.
“The main problem is actually saving a deposit,” Otto Dargan, managing director of Home Loan experts said.
“If you’re trying to save $50,000 or more as a deposit and also pay rent that’s where most young people get into trouble,” he said.
But it’s not all bad news for prospective young buyers with Mr Dargan urging patience.
“The good news is that house prices are slowing or even falling in most capital cities,” he said.
“If people are willing to work hard and budget then they may find it easier to get into the market in the next few years.”
He also advised house hunters to be realistic and not expect to find their dream home first time around.
“Many first home buyers will need to compromise with their first property,” Mr Dargan added.
“It’s called a property ladder for a reason, you need to start at the bottom.”
Richmond renter William Pasznyk, 22, said he sees himself being forced to rent for years to come.
“I don’t see myself buying a house with the way that the market is,” he said.
“I honestly see myself renting for most of if not all of my 20s.”
The Department of Health and Human Services rates the affordability of new housing for lower income earners.
Their data shows the current level is the lowest since it’s been since they began recording in 2000.
Rises in the cost of housing has caused considerable financial strain on young Victorians, forcing them to potentially consider staying in the rental market.
Mr Pasznyk said young people should not be forced to give up a decent standard of living in an attempt to enter the housing market.
“It seems like the only houses that I would be able to afford would be in the outer suburbs and I don’t really want to own a house in areas that are miles away from the city and lacks transport infrastructure,” he said.
A YouGov Galaxy survey commissioned by the Sunday Herald Sun showed young Victorians are not optimistic about owning their own home.
The survey, which focused on 18-25 year-olds, revealed almost half of the young people in Victoria (42%) do not consider it a realistic proposition for them to own their own home before they turn 30.
For those believing it may be achievable, more than one in four believed they will need financial assistance if they are to own their own home before they turn 30.
This will either be from their parents (16%) or by winning lotto (12%).
Average weekly wage:
1993 — 610.9,
2018 — $$1,450
Average yearly income:
$75,634 — (Latest recording) 2016’
$31,766 — 1993
House prices:
Average house value in 93’ — $103,687
Average house value in 18’ — $696,724
MILLENNIALS VALUE THE SAME THINGS THEIR PARENTS DID
YOUNG Victorians are discarding their image of smashed avo-loving party animals as they cut down on booze and save money for the great Aussie home ownership dream.
Millennials still value the same things their parents did — a house, a family and a safe job — but are happy to wait longer for it to happen.
They are optimistic despite acknowledging they are unlikely to break into the property market by 30 and have no idea about saving for retirement.
A survey commissioned by the Sunday Herald Sun found a greater focus on health was steering the current generation away from drugs and alcohol, with their love of social media meaning they are “constantly on display”.
The exclusive data revealed:
ONE third of men and women are very infrequent or non-drinkers.
ABOUT half of 18-24 year-olds still live with their parents.
MORE than one in four believe they will need financial help to break into the property market.
SOCIAL media is how 55 per cent young people keep up with news and current events.
Director of research at the Demographics Group Simon Kuestenmacher said the next generation’s values weren’t all that different to their parents’.
“People still want to have a house, a family, a safe job and retire, but it comes with a time delay,” he said.
“We’ve transitioned into a knowledge economy … in order to earn a good income, higher education becomes more and more important.”
The average young adult takes almost five years to find full-time work after school or university, compared with 30 years ago when it took jobseekers less than a year.
Unpaid internships have become the new norm when it comes to landing a job, with the majority prepared to work for free if it leads to their dream profession.
Workforce culture was also changing, Mr Kuestenmacher said, as the notion of “knock-off drinks” became less common.
“This generation cares a lot about fitness and appearance … the use of social media means they’re constantly on display,” Mr Kuestenmacher said.
Social media has become a “daily point of stress” as 95 per cent of 18-24 year olds have a Facebook account and more than half use it every day.
Social media was also revealed as the primary news source for young people, with many using Facebook and Twitter to stay informed.
Mr Kuestenmacher said the results were “shocking” and put social cohesion at risk.
“Essentially it takes away the role of the editor … who tries to hold some sort of balance,” he said.
“Instead, we’re faced with an algorithm that is just targeting clicks.”
The survey found there was no consensus among young people on when they should start planning for retirement; but despite this, young Victorians were increasingly optimistic.
The majority of them believe their retirement lifestyle will be on par with or better than that of their parents.
Most recognise that life for young people in Australia is better than overseas and almost two thirds believe they are living in “the lucky country”.
@GenevieveAlison
THE SWITCHED-ON GENERATION SWITCHING OFF THE TV
CLAIRE Sullivan loves television but can’t remember the last time she switched on a telly.
The 25-year-old comedian enjoys catching murder mysteries and British dramas on Netflix, which she watches on her laptop.
“When I last moved I ended up without a TV and found out I didn’t really care — you get much better television and movies online,” Ms Sullivan said.
She is one of many Millennials who have switched off from free-to-air TV; a trend that experts say is radically changing the media industry. Ten years ago, 94 per cent of 18-24 year olds watched some form of commercial TV, but today just one in five tune in.
The rest are streaming, with the average 18-24 year old spending 31 hours a month watching online video on tablets, smartphones or laptops, according to a Roy Morgan study.
Victoria University media expert Dr Marc C-Scott said young people expected a level of convenience that traditional media could not provide.
“It’s about content and access — they no longer want to watch when broadcasters say the day and time content is going up, they want it on any screen at any time,” he said.
Dr C-Scott said Netflix, YouTube and Hulu had set a high bar for “seamless” viewing experiences.
“Young people shift from one screen to another (and) they want it to be seamless, which can happen with Netflix and YouTube, but television broadcasters can’t do that,” he said.
Dr C-Scott said broadcasters were slowly moving to adapt, but questioned whether young people were a priority.
“Channel 7 is doing some things where they’re trying to move across multiple screens, while Channel 9 has made some shifts into on-demand content (and) ABC has always been well ahead of the commercial broadcasters in terms of iView,” he said.
“But I’m not sure that the (commercial networks) necessarily want to target (young people) at the moment.
“They’ve made some claims around producing certain hours for children-based content and they’d like to see that removed because that demographic aren’t watching television any more.”
It would take a lot to lure streamers like Ms Sullivan back to the telly. Even sporting broadcasts, one of the few areas still dominated by traditional media, don’t appeal.
“I’d prefer to go to live games with friends — it’s a better vibe than staying at home. The atmosphere is much better,” she said.
Despite the shift, Dr C-Scott said predictions of doom were overstated.
“I don’t think free-to-air television is going to die any time soon. Like all media, they will adapt, it’s just about how long that takes,” he said.
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