‘Financially stressed’: Data reveals homeowners have four times as much savings as renters
New data has revealed homeowners have close to four times as much money as renters.
RFI Global and DBM Atlas have released combined data from April, showing that the average homeowner with a mortgage has close to $19,000 more in their deposit accounts since the start of the pandemic, compared to renters who have saved an average of $5000.
RFI’s chief product officer Alex Boorman said, unlike renters, a high number of mortgage holders had also increased the value of their investments in shares and managed funds since early 2020.
Mr.Boorman said the data showed that renters had accumulated the least amount of wealth over the last three years, highlighting a huge sector of “finally stressed” Australians. He said renters hadn’t received the same media attention as homeowners with the focus on rising interest rates and hardship faced by mortgage holders. “Renters are a segment facing financial stress due to lower savings buffers,” he said.
“While interest rate increases do not impact renters as directly as mortgage holders, there are indirect impacts to renters – in particular, rising rental costs as landlords ‘pass on’ rate hikes to their tenants. “Renters are also facing cost of living pressures. "The RFI also point to “increased barriers” to people trying to enter the housing market.
“It is perhaps not surprising that Australians are taking out their first home loan later in life,” Mr.Boorman said. “Meanwhile, the median age of consumers saving for a deposit has declined over time. This means that customers are saving for longer – creating more opportunities for disillusionment with the process.”
Fiona Killman - News.Com.Au May 2023
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