Invest
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released by a big four bank.
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released by a big four bank.
Research by Westpac shows that the number of first home buyers looking to enter the market has doubled from 7 per cent prior to the pandemic to 16 per cent.
Westpac’s managing director of mortgages, Anthony Hughes, said the research shows young Australians are increasingly seeking the sense of independence and stability that home ownership provides.
“It’s encouraging that so many Australians are thinking about home ownership despite some of the challenges brought about by the pandemic.
“It’s also interesting to see this is now largely being driven by Gen Z, who, after being cooped up at home during restrictions, are now ready to leave their housemates or parents behind for a place of their own – many of whom might not have considered this a possibility prior to COVID-19,” he explained.
The major driver is younger Australians not wanting to pay rent as well as looking for financial stability and security following the uncertainty brought on by COVID-19.
Nearly half of first home buyers said they were more optimistic about entering the housing market than they were 12 months ago, due to factors like house prices (38 per cent ), low interest rates (24 per cent) and the opportunity to live in a new area (24 per cent).
“Even though younger generations have been some of the most financially impacted this year, it’s positive that many have really used this time to take stock of their finances and get serious about their long-term goals,” Mr Hughes noted.
Beyond financial reasons, the findings suggest time spent with others during restrictions has also been a motivating factor, with seven in 10 of those currently sharing a roof with housemates, parents or in-laws now determined to get a foot on the ladder.
A third of prospective buyers are also seeking a sense of independence through home ownership.
Where are Aussies looking to buy?
Despite experts predicting a regional boom with COVID-19 changing consumer preferences, younger Australians are still looking for properties within half an hour to the CBD, the research showed.
“With a younger generation of buyers emerging, many are also weighing up areas that would enable them to maintain a certain lifestyle, like Sydney’s inner west, which is in close proximity to social hubs and nightlife, while also catering to changing needs like the ability to work from home more,” Mr Hughes explained.
The top locations first home buyers identified they would like to buy in are:
- Sydney – western suburbs located within 10km from the city centre, like Ashbury and Marrickville.
- Melbourne – eastern suburbs located 20-40km from the CBD, like Mitcham and Croydon.
- Brisbane – Brisbane CBD and inner-city suburbs up to 20km out, like Chermside and Zillmere.
- Adelaide – southern suburbs located about 10-20km from the CBD, like Bedford Park and Bellevue Heights.
- Perth – northern suburbs located within 10km from the city centre, like Dianella and Nollamara.
RELATED ARTICLES
About the author
About the author
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
