Gen Z first home buyers are making waves in the Australian property market, with more than one in three planning to buy their first home within the next five years. This rising trend highlights the growing confidence among young Australians in achieving the long-standing dream of home ownership, despite high property prices and a competitive market.
Why Gen Z First Home Buyers Are More Determined Than Ever
Owning a home remains one of the most important goals for Australians, and Gen Z is no exception. According to a recent Westpac survey, 35% of Gen Z – primarily those in their 20s – aim to purchase their first property before the decade ends. That’s a 5% increase since earlier this year, demonstrating a renewed optimism in their ability to enter the property market.
So, what’s fueling this surge in determination among Gen Z first home buyers?
Independence and Financial Security
Almost 37% of young Australians are motivated by the desire to be more independent. After years of living with family or renting from landlords, owning a home represents freedom and control over their own space.
Additionally, 34% of Gen Z first home buyers view home ownership as a step toward financial security. Instead of paying rent that benefits someone else, investing in a property provides long-term stability. About 32% are simply looking to escape the rental cycle, making the idea of paying off their own home far more appealing than continually paying rent.
How Gen Z First Home Buyers Are Making Their Plans Happen
The majority of Gen Z buyers – approximately 80% – are actively working to boost their home deposit. Smart lifestyle adjustments, such as reducing food delivery costs and non-essential spending, are helping these young Australians save faster.
Expanding Their Property Search
Facing limited property listings, Gen Z first home buyers are broadening their horizons. Four in five are open to considering suburbs they hadn’t previously explored, increasing their chances of finding an affordable and suitable home.
Flexibility in Property Choice
Gen Z is also flexible about the type of property they purchase. Interest in apartments, which can be more affordable, has increased by 2% since the start of the year, while the demand for houses has slightly decreased. More than half of Gen Z buyers (55%) are considering rent-vesting strategies – purchasing an investment property while continuing to rent in their preferred location.
Deposit Goals and Government Support
High property prices can make saving a traditional 20% deposit challenging. As a result, many Gen Z first home buyers are opting for smaller deposits. Over half of 20-something buyers (53%) are planning to move forward with deposits of 10% or less.
Government initiatives, like the expanded Australian 5% Deposit Scheme, have made this approach more accessible. Eligible buyers can now enter the property market with as little as a 5% deposit and avoid lenders mortgage insurance, making home ownership a more realistic goal for Gen Z first home buyers.
Tips to Develop a First Home Buying Strategy
Buying your first home doesn’t have to remain a distant dream. Gen Z buyers can take practical steps to turn their goals into reality:
- Create a Savings Plan: Track spending, cut unnecessary costs, and direct savings toward your home deposit.
- Leverage Government Schemes: Explore options like the 5% Deposit Scheme to maximize affordability.
- Get Pre-Approved for a Home Loan: Understanding your borrowing capacity can speed up the buying process.
- Stay Flexible on Location and Property Type: Broaden your search to suburbs and property types that match your budget.
Don’t wait to start your home ownership journey. Contact us today to develop a personalized strategy for Gen Z first home buyers – your dream home could be closer than you think!
The Road Ahead for Gen Z First Home Buyers
With determination, smart financial planning, and access to supportive government programs, Gen Z first home buyers are proving that entering the property market is achievable. Whether you’re looking to buy an apartment, a house, or try rent-vesting, the keys to your first home are within reach.
Take the first step toward home ownership today. Connect with our team and explore how you, as a Gen Z first home buyer, can secure your dream home in the next five years. Your future in property starts now!
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
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