A survey of 1,022 Australians by State Custodians has found that over a third, or 37 per cent, of respondents would compromise on the size and quality of a property if it means living in a desirable location close to work and other amenities.
This is up from 26 per cent at the start of the year.
The lender’s general manager Joanna Pretty said living in close proximity to the city has been an important factor for borrowers for some time, but properties near the city has become unaffordable for many Australians.
“In the past, it was possible for many people to live in areas that were not too far from a major city, where you could still get decent-sized blocks for affordable prices. Nowadays, that’s an increasingly tall order,” she said.
“So, people are increasingly left in this tricky position of either choosing smaller, expensive dwellings to be closer to their work, or having a cheaper four or five-bedroom home in an outer suburb or town with a long commute to the city. It can be very difficult trying to decide which choice would ultimately fit in with your lifestyle more and what would be a good choice from an investment point of view.”
More than one in five respondents in the State Custodians survey, or 23 per cent, indicated they would be willing to compromise on location and travel longer to work and essential amenities if it means they get to live in their dream home in terms of size and quality. This is down from 54 per cent at the start of the year.
Respondents aged between 34 and 49 years and families with children who live at home expressed their preference for living in a convenient location, at 44 per cent and 45 per cent, respectively.
Property type was found to be more important to Baby Boomers aged 50 to 64 (27 per cent) than Millennials between 18 to 34 years old (19 per cent).
For 17 per cent of respondents, getting into the property with an affordable home was more important than location or property type, while 22 per cent noted they are living with their parents or in someone else’s home.
[Related: Shorten reveals Labor’s housing policy]