A new study by Money.co.uk analysed the age
of first-time buyers across 25 countries. Australians, on average, are 36 years
old when they buy their first home. Belgium and Iceland head the list with an
average age of 27 years, followed by Finland at 29 years, China and India at 30
years, and Austria and France at 31 years. The average age of first-home buyers
is 33 years in the USA, and 34 years in the UK and Germany. Average first-home
buyers in New Zealand and South Africa are slightly younger than they are in
Australia at 35 years.
Australia was 18th in a list of 25 nations,
with the most mature first-home owners coming from Switzerland at 48 years,
Czech Republic at 42 years, and Spain and Japan at 41 years. While this study
did not account for home ownership rates and many other factors, it does
highlight a growing trend of the ageing first-home buyer. According to the
study, the average budget for a first-time property in Australia is $339,000
based on current income levels, which is $92,000 lower than the average price
of a two-bedroom unit.
According to Melbourne-based property
buyers’ advocate Cate Bakos, first-home buyers have been getting noticeable
older for the past two decades: “Many are studying for longer, travelling more,
living their best life as renters for longer, putting off children for longer
and, more importantly, jumping into ‘dream home’ ownership, as opposed to
‘stepping stone’ home ownership... [Many] are disheartened that they can’t live
in a character home in the inner ring, so rather than buy smaller or further
out, they just remain renting or living with parents for longer.”
Figures highlighted in the Money.co.uk
study mirror those from other sources, with the mean age of first-home
ownership rising in Australia over the last few decades. According to figures
from Ahuri, the average age of first-home ownership was just 33 in 1995–96.
There has also been a large reduction in the proportion of younger householders
aged 15–24 buying a new dwelling, along with a rise in the ownership of more
affordable semi-detached houses and apartments.
Despite these long-term trends, current
conditions in Australia are relatively good for first-home buyers. HomeBuilder
and other government incentives were offered to first-time buyers during the
COVID-19 pandemic, and interest rates have reached historic lows. This has led
to record levels of first-home buyer activity over 2020, which will help to
keep the average age down for the immediate future.