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The great Australian dream is still alive and well, according to a new study.
New research from ubank has found more than half of Gen Z and Millennials who don’t own a home are looking to make a move on the property market within the next five years.
A total of 56 per cent of survey respondents – all Australian Gen Z and Millennials between the ages of 18 and 43 – aim to purchase their first property within the next five years.
A whopping nine in 10 respondents – at 89 per cent – agree that purchasing a home is one of their goals in life.
Despite the optimism, would-be buyers within the Gen Z and Millennial generations acknowledge several barriers are in the way of their goals – with an overwhelming number (95 per cent) conceding it won’t be easy.
More than six in 10 (63 per cent) are concerned by high house prices, while 42 per cent cited difficulties in saving for a deposit. A further 39 per cent said high interest rates are a barrier.
The financial hurdles aren’t the only things slowing down would-be buyers. The research shows both the process and terminology are “stressful and confusing” for those navigating the system.
Three-quarters of prospective buyers reported that the home buying process is a stressful one, with nearly four in five home owners and prospective buyers stating that the jargon used is confusing – highlighting terms such as break costs, LVR and redraw facility.
First-time buyers going it alone
With many young buyers still looking to achieve the great Australian dream, research from the Commonwealth Bank of Australia (CBA) has also cemented the idea that ownership remains an ambition, with the number of first-time buyers going it alone growing.
According to data from the big four bank, 40 per cent of first home buyers purchased their property alone in the first six months of 2024 – without going in on the purchase with a partner, friend or family member.
That’s a jump from the 35 per cent of first-time buyers doing the same in the first six months of 2019.
But despite going it alone, they aren’t necessarily doing it the traditional way.
CBA said the proportion of first home buyers drawing on government-funded guarantees has increased over the last three years.
Between FY21 and FY24, the number of people utilising first home buyer guarantees jumped by 45 per cent.
Executive general manager of home buying at CBA, Dr Michael Baumann, acknowledged it as not surprising to see first home buyers “looking at all of the options available to them”, given property prices rising consistently.
Add in cost-of-living pressures, he said those options include “innovative loan types, loan policy or government grants and incentives”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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