- Home ownership among 25-34 year-olds has fallen below 40%, back to levels last seen in the 1940s.
- Research from Great Southern Bank reveals younger Aussies are entering the property market with larger deposits than previous generations, while expecting a much longer road to retirement.
- Four in five Aussies (80%) believe cost-of-living pressures will delay their retirement, with the most common expectation being a delay of three to five years (22%).
- Central Coast couple Emily and Christopher, both 26, saved a 17% deposit and bought a four-bedroom home using the Australian Government's 5% Deposit Scheme after five moves in five years.
- Anglicare Australia's report 'Falling Behind' shows young Australians have seen virtually no income progress compared with the generation before them at the same age.
- Millennials were most likely to put down a 16 to 20 per cent deposit for their first home, while Gen Z were most likely to have paid an 11 per cent to 15 per cent deposit compared with 5 to 10 per cent among Baby Boomers.
- Women’s workforce participation reached a record, highlighting ongoing gender disparities in income and home ownership.
- The national gender pay gap is 11.5 per cent, which affects young women's ability to accumulate equity through home ownership.
- Young Australians face challenges in home ownership due to limited supply and rising costs, making it difficult to secure properties.
Young Australians are increasingly delaying retirement as they strive to enter the housing market, with home ownership among 25-34 year-olds now below 40%, a figure reminiscent of the 1940s.19
According to research from Great Southern Bank, younger generations are entering the property market with larger deposits than their predecessors, with millennials typically putting down 16 to 20 per cent and Gen Z around 11 to 15 per cent.26
Cost-of-living pressures are a significant factor, with 80 per cent of Australians believing these pressures will delay their retirement plans. The most common expectation is a delay of three to five years (22 per cent), followed closely by five to ten years (21 per cent).
Rolf Stromsoe, Chief Customer Officer at Great Southern Bank, stated, “For many younger Australians, home ownership remains a goal worth making significant sacrifices for.” He emphasized that they are planning further ahead and making careful financial decisions despite facing higher housing costs.
The trend is evident in personal stories, such as that of Central Coast couple Emily and Christopher, who after five moves in five years, decided to settle down. They saved diligently, managing to secure a 17 per cent deposit for their new home.4
The decline in home ownership is alarming, as it reflects broader economic challenges faced by younger Australians, who have seen virtually no income progress compared to previous generations.5
The need for reforms in housing policy is urgent, as many young people face a future of renting, which could lead to financial instability in retirement.
“Great Southern Bank research shows Gen Z most likely to pay an 11-15% deposit, while Baby Boomers typically paid 5-10%. Anglicare Australia's 'Falling Behind' report highlights that women who miss out on homeownership in their twenties or thirties can miss years of equity accumulation, and the national gender pay gap stands at 11.5%.”
