This is according to the new AHURI report released today, The housing aspirations of Australians across the life-course: closing the ‘housing aspirations gap’.

According to this report, a large majority (87%) of Australians across all age cohorts, income groups and housing tenures are currently housed well, ranging from 80% of young adults to 94% of older Australians.

Over 90% of all age groups who currently own their own home are satisfied that their home state meets their long-term aspirations, compared to just one in five renters. 

"Indeed, the vast majority of renters (between 68% and 78%, depending on age group) wanted to become homeowners, demonstrating that private rental is still seen as a transitional tenure for most," the report said. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers. 

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
VariableMore details
Unlimited RedrawsApply In Minutes
  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Unlimited RedrawsApply In Minutes

Sucasa – Ultra Low Rate (Variable) - <95% LVR - No LMI (New Purchases)

  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of February 28, 2024. View disclaimer.

'Safety and security' are the most important reasons to own a house, with 75% of respondents saying so.

"This attribute is most highly valued by older cohorts (86%), however it is also valued highly by large proportions of households in all age groups and across income groupings," the report said. 

However, despite the desire to own a home and the importance of doing so for safety and security, many Australians are still struggling to break into the property market. 

According to the report, between a quarter and a third of households across the different age groups experience considerable problems and costs in trying to achieve their housing aspirations.

Major barriers to finding appropriate housing include high-entry costs, lack of secure employment and an inability to meet the running costs of purchased or rented dwellings.

A lack of savings to build a deposit was the biggest barrier across every cohort:

  • Young - 67%, with lack of stable employment the next highest at 38%;
  • Mid-life - 64%, with lack of employment again the next highest at 36%;
  • Older - 53%, with health issues the next highest at 39%;
  • Very low income - 67% with lack of stable employment the next highest at 45%; 
  • Low income - 65%, with meeting rent or mortgage repayments the next highest at 36%; and
  • Moderate income - the highest concern over deposit savings at 70%, with meeting repayments in second at 35%; 

AHURI1

Source: AHURI

"Lack of choice in housing options is a third key barrier identified in this research, again consistent with emerging evidence about the lack of diversity within housing sub-markets that can cater to a range of life stage and household incomes," the report said. 

"This includes young adults leaving home, families and ‘right sizing’ in later life.

“Housing affordability pressures play a significant role in the ability of households to meet their aspirations.”

[Read: National property prices decline over the June quarter]

Saving for a home the biggest savings goal for Australians 

Despite the difficulty in doing so, new ANZ data shows that saving for a home has become the number one goal for its customers, rising to 22% from 19% between February and August 2020.

It has replaced the previous number one goal of saving for a holiday, which naturally fell off during COVID with domestic and international border closures. 

This goal fell from 22% in February to 13% in August, and 8.7% are continuing to save for a rainy day.

ANZ Lead of Savings & Deposits Shannon Peachey said the pandemic has shifted what people are saving for, but 12,000 ANZ customers still set savings goals across one week in July. 

“Whether you’re saving for a local holiday, a home or a car, effective goal setting is not always about struggling or sacrifice," Ms Peachey said. 

"Instead it is about creating a realistic, healthy and sustainable plan that is achievable. We are encouraging everyone that is able to, to work towards positive savings habits to help increase their financial wellbeing."

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest non-introductory and introductory interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Savings Maximiser (<$100k)

    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money

    Saver Account (<$250k)

    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money
    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking

    Savings Account (Amounts < $250k)

    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Maximum Age - 24

    Goal Saver

    • Maximum Age - 24
    02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    No monthly fees
    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    No monthly fees

    Save Account

    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings

    Bonus Saver Account (Amounts < $250k)

    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings
    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    For customers aged 14-35 years
    For customers aged 14-35 years

    Future Saver Account ( < $50k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Boost Saver

        Important Information and Comparison Rate Warning

        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of February 28, 2024. View disclaimer.

        To help reach a savings goal, whether that's saving for a house deposit, holiday or something else, here are ANZ's six tips for successful saving. 

        • Set SMART saving goals: "The best way to get a goal to work for you is to make it specific, measurable, achievable, realistic and timely. Doing this will help you feel focused."
        • Name your goal: "Have some fun and give your goal a name. After all, saving is easier when you know what you're saving for."
        • Visualise your goal: "Keep your goal front of mind with a visual reminder such as a photo, vision board or the wallpaper on your phone. Doing this makes you less likely to take money out."
        • Plan and track your progress: "Create a savings plan capturing how and when you will add to your savings. Then, track your progress regularly."
        • Enlist a money buddy: "Find someone who can support you and hold you accountable to your goal."
        • Celebrate your milestones: "Whether you’ve reached your first third of your goal, or the halfway point, don’t forget to celebrate how far you’ve come."

        See also: The ultimate guide to budgeting & saving





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