Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Spending habits hinder housing affordability

New research suggests that while Australians are increasingly savings-focused and frugal, many still feel ill-equipped to afford a home, particularly Millennials.

Research by UBank has revealed that most Australians are not confident about their ability to save for big-ticket items, with a quarter of those surveyed saying their spending makes them feel like they will not be able to afford a home.

This figure rises for Millennials, with nearly half of those aged 18-24 (40 per cent) saying they felt this way.

More than three-quarters (77 per cent) of those surveyed said dipping into their savings caused them anxiety, emphasising the importance of preventative budgeting and saving.

UBank’s research showed a clear focus on saving rather than spending among Australians, which the bank pinned down to recession fears, low interest rates and would-be first-home buyers seeing hope from falling property prices.

Advertisement
Advertisement

The survey revealed three in four Australians are savings-focused, with over half (53 per cent) seeing the value in being financially savvy. Only 33 per cent of respondents now say they are losing sleep over money, compared to 59 per cent last year.

Many Australians are making sacrifices to boost their savings, ranging from cutting back on subscription services to dropping insurance.

More than a third (35 per cent) are cutting back on private health insurance, while 29 per cent said they have cut back on home, content or car insurances. This figure jumps among those aged 25-34, with 44 per cent saying they dropped their health insurance or other types of insurances.

The most common sacrifice is dining out (61 per cent), especially for people aged 18-24 (76 per cent), while 41 per cent said they have cut back on coffee and subscriptions to gym memberships or streaming services.

UBank CEO Lee Hatton said: “Millennials get a bad rap when it comes to their finances, but these results show something that we’ve known for a long time – that this age group certainly has big goals in their sights and they’re willing to make tough choices to get ahead.”

One-third of Australians feel their spending habits make them feel they have not saved enough for their age. This jumps to 46 per cent for Millennials.

[Related: Financial literacy improving among mortgagors]

Spending habits hinder housing affordability
Spending habits
mortgagebusiness

Latest News

The tech company has appointed its first female chief executive to succeed Ian Hendey and continue its expansion plans. ...

The third-party channel is now responsible for more than half of Bendigo and Adelaide Bank’s loan book, new data shows. ...

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.