From the Daily Telegraph

Young people have switched from big spenders to big savers as improved housing affordability brings the great Australian dream within grasp once again.

Exclusive research for The Daily Telegraph shows Generation Y are saving 2 1/2 times as much as they spend. In mid-2009 they said they were spending nearly as much of their spare income as they were saving.

Charlie Nelson, managing director of consumer research firm Foreseechange, said: "The big difference is there's been a realisation that they have to actually save money to afford a house and with current interest rates and house prices they think that's within reach."

Since 2003, Foreseechange polled 1200 different consumers three to four times a year, asking what they would do with $1000. In April 2009, those 18 to 29 said they would save $301, spend $293 and pay $406 in debts. In November 2011, they said they would save $528, spend $211 and use $261 for debts.

Sydney's home affordability improved in the March 2011 quarter and again in June and September, said Housing Industry Association senior economist Andrew Harvey.

Australian Bureau of Statistics figures show the current average first-home loan in New South Wales is $297,000, less than it was at the end of 2009.

Sale prices support that finding. RP Data said the median Sydney house price in December 2011 of $535,000 was $40,000 lower than at the end of 2009.

ABS data shows the number of purchases by first-home buyers in NSW is at its highest since 2009 and 76 per cent higher than a year ago.

In December, 4208 properties were financed by first-home buyers - up from 2431 a year ago.

Rowan Holloway was one of those December 2011 buyers. At 21, Mr Holloway put a note and a picture on a pinboard at home. It was his goal to own an apartment with a Harbour view by the time he was 25. It took longer.

But in January, just before his 31st birthday, Mr Holloway achieved his dream.

The IT professional and his girlfriend Jessica Vestin, 25, returned to his family home in Greystanes until they could afford to buy. They "knuckled down" three years ago, foregoing what they called "wasteful spending".

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