Gen Y is forgoing rents to move straight into property ownership, it has been claimed.
A new study by RAMS Home Loans has surveyed 1,000 mortgage holders below the age of 30, and found 71% of respondents claimed to have never rented a property. The survey also showed 76% of respondents lived at home "longer than they would have liked" to avoid paying rent and to save for a home deposit. RAMS CEO Melos Sulicich said the trend shows Gen Ys are spending an increasing amount of time in the parental home rather than entering the rental market.
"What we are increasingly seeing is younger Australians using this time to save for their own home instead and avoiding renting. It's becoming a common financial strategy," he said.
The survey indicated that the trend of spending an extended amount of time living in the parental home before moving into property ownership was strongest in Sydney, Perth and Melbourne. RAMS claimed this was due to the cities being the least affordable capitals.
