CHART: Lending to first home buyers is going backwards across Australia

Keep the change. Picture: Getty Images

Courtesy of CoreLogic RP Data comes this intriguing chart that reveals the percentage change in Australian home lending to first home buyers, upgraders and investors since December 2008.

While these are percentage changes in dollars lent, not actual dollars, there’s been a clear divergence over the past eight years with lending to investors accelerating sharply — particularly in New South Wales and Victoria — while lending to first home buyers has fallen in all states and territories.

As a percentage of all owner occupier loans written in March, those to first home buyers represented just 14.2% according to the ABS, the lowest level seen since May 2004.

Relatively high levels of youth unemployment, higher house prices, along with record-low annual wage growth may be among factors obstructing first home buyers.

Some first home buyers may also be purchasing property for investment purposes, rather than for owner-occupation, contributing to the decline in both the number and value of lending over the past eight years.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.