6 Sydneysiders are swinging from houses to apartments and from home ownership to rental SYDNEY HOUSE PRICES GROWING DRAMATICALLY Over the last decade, average Sydney house prices have increased by 125%. While this is good news for those already owning a house, it has become a barrier for many potential homeowners. In 2007 the average house price was $524,000, and a decade later this has grown to $1,177,000. Various surveys have positioned Sydney as the second most expensive city for housing in the world, with 12 times the average household salary needed to buy an average home. HOME OWNERSHIP IS FALLING FAST FOR YOUNG PEOPLE Younger people in the 18 to 39 age bracket who normally look towards home ownership are turning toward rental accommodation. *In 2002 home ownership for this group was 29% but by 2014 this had dropped to 20%. Many of these people are now renting in an apartment. Ref: *Full title of the HILDA report 2017: The Household, Income and Labour Dynamics in Australia Survey: Selected Findings from Waves 1 to 15 (2017) (Pg. 89) APARTMENTS ARE PREFERRED FOR RENTING Census data shows that 63% of Sydney apartment dwellers are renters, compared with only 18% of detached house dwellers. APARTMENT DWELLERS PREFER EXPERIENCES RATHER THAN WEALTH ACCUMULATION The survey of apartment dwellers by McCrindle has found that 72% of people living in apartments prefer a good lifestyle over the accumulating value of their home. THE 2016 CENSUS SHOWS THAT OVER THE PAST FIVE YEARS THE NUMBER OF APARTMENTS HAS GROWN BY 17% WHILE THE NUMBER OF DETACHED HOUSES HAS NOT CHANGED (0% ) Clearly a number of existing detached houses are being demolished in Sydney to make way for new apartment buildings. The demolished houses seem to match the number of new detached houses built in greenfield areas. 10 YEAR CITY GROWTH 2007 $524,000 $1,177,000 2017 PREFERRED RENTAL TYPE 63% 18% HOME OWNERS AGED 18–39 36% 2002 32% 2006 31% 2010 25% 2014 HILDA Report 2017 KEY Long term price growth matters much more Current livability matters much more Long term price growth matters much more Current livability matters a bit more 72% Say their focus in life is more towards experiences than wealth accumulation EXPERIENCE Which is more important – the long term property price growth opportunities or the current livability of your area? CURRENT LIVABILITY IS PREFERRED 16% 24% 36% 25% KEY Low density housing (i.e. Detached house) High density housing (i.e. Unit or apartment)