Solar Savings: The Three Reasons Australians Are Holding onto their Homes for Longer
In Australia, the length of home tenure in all capital cities is trending for longer durations than ever before, posing serious implications for the real estate market. According to a recent study from Domain, the average length of home tenure has increased substantially; for houses, the median rising from seven years in 2013 to nine years, and units from six years to eight over the same period.
For governments, this is a worrying trend. Domain reported that “it shows that people might not be moving as often to homes that meet their needs, with empty nesters staying in oversized homes and not releasing them for young families who may need them.”
The phenomenon can be attributed to a myriad of factors, including economic stability, lifestyle preferences, shifting demographic patterns, housing affordability, and the uncertainty of finding better housing alternatives.
What we know from a renewable energy perspective, is that solar systems are a lasting investment, providing stable financial returns for you and your home to ensure a steady renewable energy source for around 25-30 years. If you’re set to stay put in your home, it’s a no brainer. By harnessing the power of the sun, homeowners can reduce their reliance on traditional energy sources, contribute to a sustainable future, and enjoy the financial benefits of solar energy. And if you do choose to sell later on, it also makes your property significantly more attractive to potential buyers and can increase its value by 5-8% due to the long-term savings on utility bills.
Rising Costs
One key factor contributing to longer home ownership tenures is the rising cost of property transactions encouraged by a fluctuating housing market. With steep transaction costs, such as stamp duty and agent fees, many homeowners are finding it financially advantageous to stay put rather than incur the expenses associated with selling and moving to a new property. Making the switch to solar can significantly aid in cutting down every day costs, gifting homeowners with valuable savings to help take the edge off the cost of living crisis. Learn more about our residential solar services here.
Lifestyle
Furthermore, lifestyle factors are also playing a significant role in this trend with more Australians valuing stability and familiarity in their living arrangements. This change is particularly pronounced among older generations, who prioritise comfort and security as they age.
Demographics
Moreover, we have seen changing demographic patterns like delayed marriage and family formation, and less young adults living independently, instead choosing to live in shared housing or with their parents out of necessity. These decisions are largely fuelled by cost of living concerns, further contributing to longer tenure in residential properties.
Overall, this trend reflects a combination of economic, social and demographic factors shaping the real estate landscape in the country, that pose significant challenges to everyday Australian’s trying to beat the rising cost of living. To learn more about how you can save with our solar solutions, click here.