Aussies Are Staying in Their Homes for Longer
Ten years ago, it was reported that on average, across Australia, people staying in their housing for approximately 7.5 years before getting the moving itch. Nowadays, with the rising prices of houses and the uncertainty of finding something suitable with falling availability, people are staying put for longer. According to an analysis by REA, they suggest people are now staying in their homes for an average of 10.6 years before deciding to make a move.
Locally, in Palmwoods, residents are staying for approximately 6.7 years and in Woombye slightly longer at 6.9%. Eudlo residents are long-term stayers and typically enjoy their homes for 13.4 years before making a move. In Brisbane, Middle Park homeowners are sticking around for the longest at 18.1 years while residents in South Ripley are moving on after just 1.1 years. Put that on your list of destinations to visit.
The key cause for this is because it is harder to find a suitable replacement property in a market that is increasingly in short supply and where affordability and associated costs are also much higher. Stamp duty for example becomes more unfordable as hosing costs increase. In Palmwoods for example, based on the price increases over the last 12 months you could be paying an additional $9,000 in stamp duty.
People will likely continue to stay longer in their homes over the next several years. Building approvals although up by approximately 42% this year are below the 3-year average by some 16% which is a decline of 115,000 dwelling approvals. Meanwhile, Australia’s population has grown by 921,000 in the three years ending December 2020. Although international migration has come to a halt and Aussie’s are said to be having fewer children since the beginning of the pandemic, the housing shortage will likely remain a key issue in the years ahead, and therefore, we are all likely to stay safe and certain in our homes during uncertain times.