Young Australians are overcoming housing challenges by
downsizing, co-buying, and seeking early financial advice to enter the market.
Gen Zs and Millennials are defying housing affordability
concerns by adopting creative and pragmatic strategies to get on the property
ladder, according to Great Southern Bank’s latest No Place Like Home report.
The report showed that over one-third of Millennials (34 percent) and Gen Z (36 percent) plan to purchase an investment property within
the next three years. This shift highlights their strong desire not only for
home ownership but also for wealth creation.
Two-thirds of young Australians (60 percent) have opted for
more modest homes or apartments and around a quarter (27 percent) have
co-purchased with friends or siblings, underlining their determination and
adaptability.
"In order to achieve home ownership younger generations are
showing remarkable resilience and creativity,” said Rolf Stromsoe, chief
operating officer of Great Southern Bank.
"More than any other demographic, they are looking for
investment opportunities in property. ‘Generation Rent’ is also adopting some
clever, realistic strategies like leaning on family for support or opting for a
more modest property, in order to secure their future home.”
The report also identified a significant advice gap. Nearly
half of Australians (46 percent) believe they need at least $100,000 in
savings before seeking professional financial advice, potentially delaying
their path to ownership.
However, Gen Z, renters, and first-time home buyers are more
likely to seek expert advice early in their journey, even with modest savings.
"Starting your financial journey sooner rather than later
can make a difference,” said Stromsoe.
"It can cut the amount of time and money spent on rent and
get people on the property ladder much faster.
"It’s a good idea to talk to a broker or one of our home
lending specialists. They understand all the clever strategies Australians are
using to buy a home or investment property, including using multiple savings
accounts to grow their deposit or taking advantage of Government-backed lending
schemes.”
The findings also revealed the increasing importance of
family support, with around a third (35 percent) of young home buyers turning
to the Bank of Mum and Dad to help fund their home purchase.
This article was originally featured in SPI’ sister
brand Broker Daily.
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Jason Gwerder
Tuesday, 6 May 2025
