Almost three quarters of buyers are using the “bank of mum and dad” to help them buy property.
Economist, Carlos Cacho, of Jarden Australia, says surveying mortgage brokers reveals about 15% of all borrowers were using some form of family assistance to buy a home, receiving on average $92,000 to help them out.
Assuming the majority of them are first time buyers, Cacho says this implies 75% of first home buyers are receiving some sort of assistance from family to buy.
This is a significant increase on 2017 when University of Newcastle researched showed about 60% of first-time borrowers had help from family and on 2010 when it was just 12%.
“The true scale of it is potentially even larger when you look at the big capital cities. It certainly feels like it’s the key driver of the housing market,” he says.
Australian Housing and Urban Research Institute (AHURI) analysis shows those with family financial support are twice as likely to buy than those without.
The increase in family assistance comes as home price rose on average by 6.4% across the capital cities in 2023 and by 3.2% across the regions.