By: Mark McCrindle
While people are still ambitious to purchase a house, many are finding it a challenge given the cost of living.
One in six Australians (17%) are currently in the market for their first property, and 20% aspire to own property in the future.
As the gap between housing demand and supply widens, achieving home ownership is becoming increasingly difficult for aspiring owners, For those looking to buy their first property, they are most likely to want a free-standing home (65%), followed by an apartment (22%), land (7%) and a semi-detached house (2%). Current owners looking to buy an additional property are most likely to buy a free-standing home (62%), followed by an apartment/unit (21%) and a semi-detached house (7%).
While aspirations for home ownership are prevalent, people are most likely to see high property prices as the biggest barrier facing first-home buyers (38%), followed by cost-of-living pressures (31%). These pressures are more prominent than other barriers such as deposit requirements (15%), limited housing supply (8%) and competition from investors (7%). In fact, more than three in five (62%) agree that most young people can only enter the property market with financial support.
Read more: The fading dream of home ownership
Gen Z Thinking Strategically About Home Ownership
Despite economic challenges, Gen Z harbour ambitions to enter the housing market. One third of Gen Z (34%) are in the market for their first home to either live in or as an investment property, 29% aspire to own a property in the future and 11% are in the market for another property. Of those in the market for a property, 58% of Gen Z aspire to own a free-standing home, 21% aspire to purchase an apartment or unit, while 12% are looking for land to secure.
The factors which matter most to Gen Z when thinking about purchasing property are affordability (44%) and suburb or location (27%). When thinking about barriers for first home buyers, 37% of Gen Z agree that high property prices is the biggest barrier, and 35% agree cost of living pressures are also a big barrier.
In fact, three in five Gen Z (61%) strongly or somewhat agree that most young people can only enter the property market with financial support such as help from parents, highlighting the means necessary to achieve home ownership.
They are also considering unconventional routes to enter the housing market. Almost two in five (37%) Gen Z would be extremely or very likely to purchase a property with family members such as a sibling or parent. Similarly, more than one third of Gen Z non-owners (33%) would be extremely or very likely to purchase a property with friends to split the cost (compared to 17% Gen Y, 12% Gen X and 6% Baby Boomers).
Despite all of the barriers acknowledged by Gen Z, of those looking to purchase a property now or in the future, half of Gen Z (49%) are still extremely or very hopeful about entering the housing market.
Article supplied with thanks to McCrindle.
About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.
Feature image: Photo by Wolf Zimmermann on Unsplash