How Often Are We Moving House?
We take a look at the data.
It’s easy to imagine we’re moving house more than we used to and buying and selling more property than we used to. But is this really the case?
The mythology says that our grandparents usually bought into the great Australian dream, buying a home (on a quarter-acre block) when they were married, which they lived in for the rest of their lives.
Our parents may have had a starter home, then a family home, before downsizing when they retired.
But, now with property prices so high, Gen X and Gen Y face having to climb the property ladder in increments.
Homeownership: The facts
We know we’re moving around more frequently than our grandparents’ generation. But the truth is, our property buying and selling have actually slowed down a little.
Data shows that the average Aussie homeowner now holds onto their property longer than a decade ago.
In 2009, the average tenure for a house owner was 7.5 years but that had risen to 11.3 years by 2019. The average tenure in apartments rose from 6.7 years to 9.6 years over the same period.
Here in Sydney, we stay put for longer. House owners hold their property for an average of 12.4 years and apartment owners hold theirs for an average of nine years.
CoreLogic concludes that it’s housing affordability that’s driving this trend.
Why are we moving house more
Beyond affordability, we think there are many reasons the homeownership pattern here in the eastern suburbs is changing.
First, people are delaying homeownership – partly because saving a deposit for your first home is harder than ever. This means an increasing number of buyers are coming into the market for the first time when they’re in their thirties or forties after they’ve started a family.
Second, as Sydney property prices increased so too did stamp duty. This added significantly to the changeover costs of moving up the ladder. As a result, people increasingly chose to upgrade their homes via a major renovation rather than upsize. How many houses in the Eastern Suburbs do you know of that still retain their original footprint?
Third, in the Eastern Suburbs, we’ve noticed that once people have bought in, they’re reluctant to move on. And why would they? We have the very best of what Sydney has to offer. When you become attached to a part of Sydney, your horizons often narrow and there’s often little stock to upgrade into. Although by stretching your horizons even just a little you can overcome that.
Finally, the way we live has also changed dramatically. People once had a career or job for life, staying with one employer for decades. Now, we move around much more. Nationally, the average tenure in a job is 3.3 years, but it increases based on age. And this career mobility has an impact on housing mobility – maybe we’ll rent for a while, rentvest, or sell and buy to move to another city or country for work.
But when we do eventually settle down and buy a home, we’re often more inclined to stay the course.
The eastern suburbs’ most tightly held suburb
All this means that property in Sydney’s Eastern Suburbs is often tightly held and hard to break into. But which part of our great area are people most reluctant to leave?
Corelogic data shows that in all of Sydney’s Eastern Suburbs, homeowners stayed put the longest in the Randwick Council area.
In fact, Randwick was the 17th most tightly held area in the country, with an average tenure of 15.1 years. Little wonder, when it offers proximity to great beaches, great transport links, great schools and pretty much everything else you’d ever need.
Get in touch with our team today to find out more about buying or selling in Sydney’s Eastern Suburbs.