Invest
‘Key workers’ skip cities in search of affordable housing
The cost of living and housing in some of Australia’s key capital city markets is causing “key workers” in certain sectors to relocate in search of a more manageable lifestyle.
‘Key workers’ skip cities in search of affordable housing
The cost of living and housing in some of Australia’s key capital city markets is causing “key workers” in certain sectors to relocate in search of a more manageable lifestyle.
In particular, home ownership constraints in Sydney and Melbourne could be triggering a mass movement of nurses, teachers, paramedics, ambulance officers and emergency services personnel.
A report from PwC Australia, which was commissioned by Genworth Mortgage Insurance and Teachers Mutual Bank, found that 79 per cent of key workers in Sydney and Melbourne believe that home ownership is not achievable for them, with almost one in four looking to either relocate or change careers.
The survey, which analysed responses from 1,084 Australians, found that despite having the ability to service a home loan, key workers were finding the time taken to save for a deposit to secure a loan was a major barrier to buying a home in Sydney and Melbourne.
“We are potentially looking at a drain of key workers from Australia’s two largest cities, when demand for their services is growing and at a time when 57 per cent of the general public believe a shortage already exists,” said Steve James, chief executive of Teachers Mutual Bank.
“If our key workers can’t find homes, our cities can’t function,” he said.
Big sacrifices
“Significant personal sacrifices” are being made to cope with affordability issues, according to PwC.
These include the following for key workers:
- 47 per cent working overtime, which is nearly twice the national average
- 23 per cent moving in with family or friends to save a deposit
- 29 per cent delaying starting a family
What the future holds
The report noted that the challenges in saving for a deposit have been exacerbated by the fact that many key workers are required to be “on-call”, which can restrict their access to homes in more affordable suburbs.
According to the research, it takes a key worker over 12 years to save for a 20 per cent home deposit in Sydney and more than nine years in Melbourne.
“[It’s] clear something needs to be done to help them secure a home sooner,” the CEO and managing director of Genworth, Georgette Nicholas, said.
Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
