Homeowners are at a distinct advantage, but many are blocked from market

New research found that homeowners are better off emotionally, as well as financially. Photo / 123rf

As a Millennial living in Sydney, I've pretty much known from the beginning that I'd never be able to own a house unless I won the lottery. This is a pretty confusing state to be in, seeing as our parents were still of the generation that could still just assume they'd grow up, get married, and buy a house.

This isn't doomsday thinking either, or anything to do with avocado toast, it's just reality — and becoming truer every year.

In the past 12 months, Australian housing prices had the highest growth rate in 20 years. At the same time as prices rise, incomes aren't increasing to meet them. While in the 90s a homeowner only needed to spend a third of their earnings paying back their debt, these days new homebuyers have to put aside almost twice what they earn.

So no, it's not laziness, or complaining, or entitlement — it's hard fact. According to a new study, it's also impacting wellbeing.

A survey of over 30,000 respondents by Finder discovered that being a renter leaves you more stressed, less happy and saving less money than your homeowning counterparts.

While 83 per cent of homeowners reported being happy, only 69 per cent of renters could say the same. At the same time, 26 per cent of renters are right up the other end of the emotional spectrum, admitting that they are 'extremely stressed' with their financial situation. Only 15 per cent of homeowners felt the same way.

Which makes sense, considering homeowners were found to save nearly twice as much money per month than renters.

A reminder that this extra money has nothing to do with anyone working harder than anyone else. In fact, there was only a six per cent difference in the number of renters and homeowners who felt secure in their jobs.

So owning a house puts you in a place of privilege for both your emotional and financial well being, yet younger generations are essentially being blocked from the market through no fault of their own.

Despite this, some real estates are still expecting their tenants to buy Chrissie presents for landlords. What a time to be alive.