CommBank Survey: Housing Dominates Young Australians' Financial Worries

In the latest news in Sydney's property landscape, a new CommBank survey reveals that housing is the number one financial priority for young Australians. With Sydney's median house price forecast to hit $1.92 million by the end of 2026, and inflation pushing the Australian dollar higher, the dream of home ownership is becoming increasingly challenging.

CommBank Survey: What Young Australians Are Worried About

A recent poll conducted by The Daily Aus in partnership with CommBank Newsroom shows housing remains the dominant financial concern for young Australians:

CommBank reports that over 9 million customers are now using their app regularly, with more than 3.4 million engaging with money management tools each month - a sign that Australians are actively trying to get their finances in order.

Why Housing Affordability is Getting Harder

Several factors are combining to make it harder for Sydney buyers:

1. Rising Inflation

The latest inflation data shows CPI at 3.8%, well above the RBA's 2-3% target. Housing costs alone are up 5.5% over the past year, outpacing wage growth.

2. Potential Rate Rises

CommBank economists are forecasting a rate hike at the February RBA meeting. Higher rates mean:

• Reduced borrowing capacity (approximately $12,000 less per 0.25% rise)
• Higher monthly repayments for existing borrowers
• Tougher serviceability assessments from lenders

3. Sydney Price Growth

Despite affordability concerns, Sydney prices continue to rise:

Australian Dollar Strength Adds to the Mix

The Australian dollar has rallied to $0.69 USD, a 16-month high. CommBank forecasts it could reach $0.73 USD by year-end.

For Sydney property buyers, a stronger Australian dollar can have mixed effects:

• Reduced foreign competition: Property becomes more expensive for overseas buyers
• Lower import costs: Could eventually ease inflation pressures
• Economic confidence: Signals strength in the Australian economy

Latest News in Sydney: Where First Home Buyers Are Looking

With Sydney's median house price at $1.6 million, first home buyers are increasingly looking at:

How to Compete in Sydney's Market

1. Use the 5% Deposit Scheme

The First Home Guarantee scheme allows eligible buyers to purchase with just 5% deposit, without paying Lenders Mortgage Insurance. This can save $15,000-$40,000 on a Sydney property.

2. Get Pre-Approved Early

With a potential February rate rise, getting pre-approved now locks in your current borrowing capacity. Don't wait until you find a property.

3. Consider Buying with Family

CommBank and other lenders offer family guarantee products that allow parents to help without giving cash. This can boost your borrowing power significantly.

4. Look at Units First

Sydney's unit market offers better entry points. A $910,000 unit requires approximately:

• 5% deposit: $45,500 (with First Home Guarantee)
• 10% deposit: $91,000
• 20% deposit: $182,000

CommBank's Key Insights

From their latest research, CommBank highlights:

• Essentials catching up to housing as a financial worry, reflecting cost of living pressures
• Young Australians actively saving despite challenges
• Technology helping - millions using budgeting and money management tools

What to Do Now

If you're a young Sydneysider looking to buy:

1. Know your numbers: Get a clear picture of what you can borrow
2. Understand the schemes: First Home Guarantee, stamp duty concessions, super access
3. Act before rates rise: February 3rd RBA meeting could change the landscape
4. Consider all options: Units, growth areas, family help