In addition to general market data, nationally and across the States, Westpac ask potential homebuyers what they are actually looking for in their next dwelling purchase.
The key takeaways: 📉<20% of potential buyers (of all types – FHB, upgraders or investors) are looking at purchasing apartments (stable/diminishing) 📈a growing proportion (around 20-25%) are looking for townhouses 🏡60%+ are looking for a detached house 🧺roughly 1/3rd want to move to a regional area
Tellingly, the average minimum number of bedrooms has grown between 2021 and 2025, hovering just under 3 for first home buyers and above 3 for upgraders and investors.
The upshot: for all the talk about #apartments in activity centres being proposed as the solution for getting millennials into their first homes, only ~15% want an apartment, and buying a new one with the space they would need will be cost-prohibitive for most.
Ditto the notion of 70% (or more) of new housing to be in established areas.
It also shows that people aren't intending to move to regional areas to live in apartments around train stations.
🤔What other evidence is necessary to convince decision makers to change tact on #housingsupply and #affordability? The current approach is misplaced, and certainly not fit for the needs of the next generation of homebuyers – especially in our biggest cities.