Soon it might just be impossible for the younger generation to afford a house in the suburbs of Melbourne.
As previously reported, the median house price in Melbourne is already around $700,000 that is because a little further into the inner ring of Melbourne suburbs median prices have already exceeded the $1 million mark, according to the Herald Sun. In the quarter ending December 2015, the median prices in Victoria's capital have risen 1.8 percent and some experts think that the prices will continue to grow.
This would not be a problem except for the young Melbourne people, which experts fear might struggle finding jobs in 2031. According to Domain, job growths continue to be focused in the CBD and because of this buying a house even in the outer suburbs of Melbourne might become too impractical after a decade for majority of young people.
Furthermore, according to Domain, the experts have forecasted that only half of Melbourne's youth will have access to work opportunities in the city by 2031. The study was propelled by the new trend wherein homebuyers are flocking to the outskirts of Melbourne because of affordability and construction of new homes that is boosting the economy of the entire city.
The forecast suggests that in the city central, there will be a rise in jobs like management, marketing and finance and a big decline in suburban manufacturing that require manual labor. Thus, there are fears that will be fewer job opportunities in the CBD and without jobs, many members of Melbourne's youth will not be able to afford a house in the city of Melbourne a decade after.
SGS senior consultant Armando Mazzei clarifies the fears that have risen from the recent forecast. First he said that job growth indeed would continue to be focused in the CBD as firms prefer to make themselves easily reachable to a large pool of human resources. He then explains that it's wrong to think those in the outskirts will not have jobs. They will have jobs, but they would also have to spend long hours and more money just to get to work.
Jobs in the CBD combined with rise in demand for commercial and residential space will drive property prices up which will eventually cause financial stress to those who have yet to set aside some funds for a house.
