It’s Harder Than Ever For Singles To Buy A Home

Co-author: TJ Ryan
Being single can be rough in ways you hadn’t even thought of. Disastrous first dates are pretty small fry compared to your home ownership prospects.

Being a single first homeowner has always been a bit of a lofty aspiration, but new research from ME Bank shows that the property market is becoming even harder for singles to break into.

Their analysis of 40,000 loans within a 2-year period revealed a number of things, including the following:

  • The number of single home loan applications had fallen by 9 points, to 35% of all loans.
  • Single females are struggling more so than single men, with the number of single female loan applications falling by 14 points (compared to a loss of only 5 points for single male loan applications).

The problem of housing affordability is only getting worse for singles

ME’s research also revealed some worrying figures concerning the average sizes of home loans taken out by singles.

While it’s no surprise that NSW takes the cake when it comes to both average loan size and greatest rate of increase, the fact that both the overall average loan amount and the Victorian average loan amount have also increased significantly (by 9% and 11% respectively) is worrying.

ME Head of Home Loans Patrick Nolan acknowledges that these rising property prices are a problem, saying, “Even as part of a couple, east coast property prices are out of reach for many Australians.”

Surveys show that almost 90% of Australians now view the traditional Great Australian Dream of home ownership as out of their reach.

It’s not just about smashed avo, either. Saving towards a home deposit is infinitely easier if you have a partner to double your savings, which is how Gen Y couples are buying investment properties at just 25 years old.

Singles can still own a home, but need to employ different tactics

All hope is not lost; Mr Nolan offers this advice for singles dreaming of home ownership:

“Being single is not a reason to delay or forgo home ownership. Buying your own home is one of the smartest decisions you can make.

“There are a number of strategies you can deploy, such as investing or tapping into the bank of mum and dad.

“Alternatively, join forces with someone who isn’t your romantic partner, such as a friend or family member.”

However Mr Nolan also stresses the important of home loan pre-approval, saying that arranging it will “give you a good idea of what you can afford” and will help you “not waste time looking at homes that are beyond your budget”.

And in good news for the future, the Federal Government has announced the creation of an Affordable Housing Implementation Taskforce to develop a plan for affordable housing across the nation.

Share this article