With house prices rising faster than buyers can save, one in eight first-time home buyers said they considered buying a home in another state to help them get on the property ladder .
According to Finder’s First Home Buyer Report 2022, which surveyed 1,001 first-time home buyers in Australia, 13% of respondents said they were looking for their interstate home as well as, or instead of, their own State.
South Australians (17%) are most likely to search between states, followed by those in New South Wales (14%), while only 6% of West Australians look across borders of their state.
Finder home loan expert Richard Whitten said rising house prices have made home ownership increasingly difficult.
“This is especially the case in major capitals where demand is so high,” Mr Whitten said.
“Buyers who are open to relocation can benefit from lower prices in regions or smaller towns.
“I moved from Sydney to Melbourne, partly because of property prices.
“When you re-examine your real estate budget in a different market, you suddenly have a lot more options.”
Mr. Whitten said that if homebuyers choose to move from state to state, it’s important to be aware that things like stamp duty and first-time homebuyer concessions can vary.
In addition to moving, 25% of first-time home buyers are looking for a property in another area of their own state due to rising prices.
For those looking in another area of the same state, Queenslanders (26%) and Victorians (26%) are most likely to do so, while West Australians are again most likely to stay on space (20%).
Across the eight capitals, homes have grown by an average of 19% over the past year and units by 12%, according to Finder.
While home values in the rest of the state combined are up 5.1% over the past three months, more than three times that of the capitals combined (1.5%).
At the same time, the capitals’ combined population fell for the first time on record, down 0.1%, with Melbourne recording the biggest net loss of 61,000 people in the past 12 months.
The huge exodus from cities led to regional areas having a net gain of 49,000 people.
“This regional price growth reflects increased demand through 2020-21 as many city dwellers undertake sea and tree changes,” Whitten said.
“We will likely see a market correction soon, as increased movement from overseas is further driving demand in cities.”
Mr Whitten said that while a growing number of first-time home buyers are looking for a property from afar, you don’t have to leave home just to afford a home.
“Try looking in another suburb of your city – often if you look beyond high-demand suburbs, there are similar but more affordable neighborhoods nearby.”