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30 Ways To Pay OffIn recent years, a notable trend has emerged where an increasing number of Australian couples are choosing to prioritize homeownership over marriage, as indicated by a study conducted by Aussie Home Loans. The research, which scrutinized a substantial volume of mortgage settlements from 2010 to 2024, discovered a significant 80% surge in home loans granted to unmarried couples since 2015.
The data showcased a noteworthy shift in preferences, with de facto couples representing 15% of all mortgages in 2015, a percentage that has now escalated to 27%. This transformation suggests a growing inclination among Australians to invest in real estate as opposed to conventional milestones such as weddings.
Further reinforcing this inclination are statistics from mortgage brokerage Lendi Group, which underscore the trend towards homeownership among unmarried couples. Between 2020 and 2024, the percentage of home loan applications from de facto couples surged from 24% to 39, while the share of married couples decreased from 42% to 33%. Notably, among first-home buyer applicants in early 2024, 40% constituted de facto couples, 30% were single buyers, and 29% were married couples.
This shift in behavior is largely attributed to the mounting pressures of housing affordability, prompting many Australians to reevaluate their financial priorities. For instance, the average cost of a wedding in New South Wales stands at nearly $50,000, a sum that could substantially contribute towards a home deposit. To illustrate, a 20% deposit for a median-priced home in Sydney, valued at $1.1 million, necessitates approximately $220,000.
Similar patterns were observed across various states. In Victoria, a wedding costing around $47,200 could potentially cover over half of a 20% house deposit in certain suburbs. In Queensland, where the average wedding expenditure amounts to $31,900, this cost translates to roughly one-fifth of the deposit required for a $900,000 home.
In South Australia, wedding expenses can significantly impact prospective homebuyers. According to data from the Australian Bureau of Statistics, the average wedding cost in the state reached $40,000 in 2024, which is nearly a quarter of the 20% deposit required for an $815,500 home in Adelaide. For buyers opting for a 10% deposit, this expense surges to 49%.
John Morris, chief auctioneer at Ray White SA, highlighted how forgoing a wedding for the time being could enable young individuals to utilize the funds that would have been allocated towards a wedding to take a step towards homeownership. This strategic financial decision empowers individuals to leverage these funds to enter the property market and secure a footing on the property ladder.
The evolving landscape where couples prioritize homeownership over marriage underscores a significant societal shift driven by financial considerations and housing market dynamics. As housing affordability remains a pressing issue, individuals are making strategic choices to achieve their homeownership aspirations, marking a departure from traditional norms.
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