The majority of millennials (70 per cent) believe the housing market should be more heavily regulated, according to HomeLoanExperts.com.au.
The June Borrower Sentiment Index showed 40 per cent of millennials believe the support should come in the form of first home buyer schemes.
Just 30 per cent thought the regulations should target property investors.
Comparatively, 53 per cent of Generation X felt more regulation was needed, with 37 per cent of those supporting restrictions on property investment and 26 per cent believing support for first home buyers was the right method.
The data shows younger Australians are feeling the pinch as property prices continue to rise across the country with 42 per cent of millennials saying they were priced out of the region they wanted to buy in and forced to search for property elsewhere.
HomeLoanExperts.com.au CEO Alan Hemmings said the data showed why many millennials are looking beyond the traditional home buying criteria when it comes time for them to buy.
“After the considerable growth in property prices over the last few months we’re seeing evidence of millennials turning back to the drawing board in order to purchase property,” Mr Hemmings said.
“Whether this involves them delaying their purchase, turning to family members to act as guarantor or even considering other options like rentvesting, millennials are being forced to consider other methods in their property journey.
“What we are seeing, as more workplaces embrace flexible working conditions, is more millennials considering suburbs on the outskirts of cities, the ‘Goldilocks suburbs’ where they can still commute from one day a week, but which offers much better affordability than city hubs,” said Mr Hemmings.
It isn’t just millennials feeling the pinch; 51 per cent of those surveyed had to either change the area they were looking in or the type of property they purchased to fit their budget. Boomers faired best in the search, with 60 per cent able to buy the property they wanted without any amendments to their budget or search parameters.
But despite these restrictions, 33 per cent of those surveyed still felt it was the right time to buy property. Almost three quarters (74 per cent) said the asset was overvalued, but less than half (44 per cent) said that meant it was a bad time to buy.
Millennials are still the most bullish on property – 45 per cent said it was a good time to buy property, despite 87 per cent saying they felt property is currently overvalued.
Comparatively, 74 per cent of Gen X believe the asset is overvalued and 67 per cent of boomers agree. Only 29 per cent of Gen X think now is a good time to buy, compared to 40 per cent of boomers.
