{"id":10393,"date":"2017-02-02T16:00:21","date_gmt":"2017-02-02T05:00:21","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=10393"},"modified":"2017-02-02T16:00:21","modified_gmt":"2017-02-02T05:00:21","slug":"why-renting-is-on-the-rise","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/why-renting-is-on-the-rise\/","title":{"rendered":"Why renting is on the rise – John McGrath"},"content":{"rendered":"

In his column for\u00a0Switzer<\/a>, John McGrath discusses the reasons behind a significant rise of renters in Australia.<\/strong><\/p>\n

Here’s what he had to say:<\/h4>\n

There\u2019s been a significant increase in the number of Australians renting their homes over the past two decades.\u00a0\"mcgrath\"<\/a>
\nAs discussed in our latest McGrath Report, data from the Bureau of Statistics* shows 26% of Australians are currently renting their homes, up from 18% in 1994-95.
\nIn line with this trend, the percentage of householders who own their home \u2013 either with or without a mortgage, has decreased from 71% in 1994-95 to 67% .
\nSo what\u2019s going on?<\/p>\n

Is the Great Australian Dream of home ownership dying?<\/h4>\n

The short answer is no.
\nThis ingrained cultural value has been passed down the generations and most people would tell you they\u2019d love to own their own home.
\nBut it\u2019s certainly fair to say it\u2019s become harder to achieve in markets like Sydney and as a result, more people \u2013 especially the younger ones, are coming up with ways to achieve the dream but in a slightly different format.
\n\"first
\nThe aspiration for home ownership was once all about the house on the quarter-acre block.<\/strong>
\nNow, more people than ever are aspiring to own apartments and not just because they\u2019re more affordable \u2013 people also love the secure, low maintenance lifestyle and close proximity to amenities.
\nSecondly, the dream of\u00a0home<\/em>\u00a0ownership has been replaced by\u00a0property<\/em>\u00a0ownership in the minds of many Gen Ys.
\nThey still want to own property \u2013 particularly after seeing their parents do well through real estate, but they can\u2019t afford to buy where they want to live.
\nLifestyle is the priority for these young people, so they rent instead and buy for investment in more affordable markets.<\/strong>
\nTake a look at the table below provided by CoreLogic RP Data.
\nIt shows the five most popular locations for renters in each of the East Coast capital city markets.
\nWith apartment renting, which is the primary domain of young singles and couples (but we are seeing more families in apartments these days), there is a clear preference for inner ring locations.
\nAmong house renters, predominately families, there is a mix of inner ring locations and commuter areas on their city\u2019s outskirts, which are of course much more affordable.
\n\"JM1\"
\n\"JM2\"
\n\"JM3\"
\n\"JM4\"
\nSource: CoreLogic RP Data, FY2016, suburbs with more than 500 properties<\/em>
\nThere\u2019s no question that affordability is the key reason we\u2019re seeing more people renting.\u00a0\"for
\nCurrently, with interest rates so low, there are many areas where it is actually cheaper to buy than rent but if you can\u2019t get the 20% deposit together, it\u2019s irrelevant.
\nThat\u2019s the part that brings many young people unstuck.
\nIn big city markets, a 20% deposit is typically hundreds of thousands of dollars and that\u2019s not easy to save even on a good income.<\/strong>
\nIt can take years.
\nThe biggest plus to renting is the ability to live in many different areas so you can try out different types of lifestyles.
\nTry the city life for a while, then move to the beach.
\nLive in a small art deco block with a garden then try high rise living with fantastic residents\u2019 facilities such as a pool and gym.
\nRenters also have the flexibility of being able to move much more easily than if you owned your home, which would require selling.\u00a0\"landlord<\/strong>
\nThese days, jobs centres are spread all over our capital cities and people like living close to work, so an inner city renter in Sydney who gets a new job at Parramatta could move there with relative ease.
\nI\u2019ll always advocate buying over renting because the wealth creation available through property is the best path to long-term financial security for most people.
\nBut if you do rent, why not enjoy these benefits while you can (but keep saving for that deposit!)
\n*<\/strong>Housing Occupancy and Costs 2013-14, Australian Bureau of Statistics, published October 16, 2015<\/p>\n","protected":false},"excerpt":{"rendered":"

In his column for\u00a0Switzer, John McGrath discusses the reasons behind a significant rise of renters in Australia. Here’s what he had to say: There\u2019s been a significant increase in the number of Australians renting their homes over the past two decades.\u00a0 As discussed in our…<\/p>\n","protected":false},"author":176692471,"featured_media":7880,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[13,17,27],"tags":[],"class_list":["post-10393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story","category-property-investment","category-trends-topic"],"yoast_head":"\nWhy renting is on the rise - John McGrath - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/why-renting-is-on-the-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why renting is on the rise - John McGrath - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"In his column for\u00a0Switzer, John McGrath discusses the reasons behind a significant rise of renters in Australia. 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