The Australian property market, particularly in major cities like Sydney and Melbourne, has been grappling with a housing crisis. But is this phenomenon unique to Australia? Not at all! The housing crisis is a widespread global issue, affecting cities around the world.
Sydney, Melbourne, and beyond
Sydney and Melbourne are not alone in facing housing affordability challenges. These cities rank among the world’s least affordable, alongside other metropolises such as Auckland, Hong Kong, Los Angeles, San Francisco, Vancouver, and Toronto. The housing crisis is a global phenomenon that knows no borders.
Changing realities for property ownership
The dream of homeownership has evolved significantly over the years. In Australia, half of those born in the 1950s and 1960s purchased their first homes by the age of 30. However, for younger Australians born in the 1990s, this figure has dropped to 36%, with many of them relying on parental assistance to enter the property market.
A looming crisis impacts billions
According to the World Economic Forum, the housing crisis is projected to impact a staggering 1.6 billion people by 2025. Several factors contribute to this global predicament, including a shortage of available land, escalating costs of labour and materials for construction, and the limitations in borrowing capacities for aspiring homebuyers.
Implications for sellers, buyers, and renters
For Sellers: The current state of the housing market presents a favourable opportunity for sellers. With fewer properties listed for sale compared to the past five years, there is reduced competition. If you’ve been considering selling, now could be an advantageous time to do so.
For Buyers: Buying a property may present some challenges, especially if you’re looking to upsize. However, the situation may become even more challenging in the future. The key is to plan strategically and be open-minded about potential locations and property types to find your ideal home.
For Renters: If you find yourself in a position to afford homeownership, consider making the transition from renting to owning. Rental rates have dramatically increased, making mortgage payments often more appealing than paying rent. By investing in a property, you can build equity and secure your financial future.
We’re here to help
Whether you’re a seller looking to capitalise on the current market conditions, a buyer searching for the perfect home, or a renter contemplating homeownership or looking for a new lease, we’re here to support you throughout your property journey. Our team of experts is dedicated to providing you with the guidance and assistance you need to make informed decisions.
Don’t let the housing crisis deter you from achieving your real estate goals. Contact us today to explore the possibilities and navigate the market with confidence.