Aussies are abandoning their dreams of owning a home

Jarrod Brown
By Jarrod Brown
4 Min Read

Many Aussies are abandoning the ‘great Australian dream’ of owning their own home, thanks to rising interest rates, skyrocketing house prices and ever-increasing cost of living. 

A new poll by the Susan Mckinnon Foundation has revealed only 59 per cent of Millenials and 63 per cent of Gen-Z’s think they are likely to ever own a home. 

Despite 88 per cent of Millennials and 93 per cent of Gen-Zs saying they would like to do so, the national poll of 3,000 Australians found the biggest barriers facing prospective homeowners are high property prices, rising interest rates, and lack of funds for a deposit.

The figures are even worse among older renters, with only 40 per cent of Gen-Xs and 15 per cent of Boomers believing they are likely to own a home if they don’t already.

The high cost of housing has also impacted the timing of key life events for 72 per cent of Millennials and Gen-Zs, such as moving out of home, changing careers or having children.

Only half of Australians with a mortgage expect to have paid it off by the time they retire, with a further 11 per cent planning to keep working until their home is paid off.

Seven per cent of respondents said they don’t ever expect to pay their mortgage off, and nineteen per cent expect either to either downsize or live with their family.

This news comes after results from Finder’s Consumer Sentiment Tracker earlier this year showed 93 per cent of Gen Z Aussies are “somewhat or extremely stressed” with their current financial situation.

According to Finder, while the average Gen Z’er contributes an estimated $798 per month towards their savings, more than two in three live month to month and around one in seven would not financially survive for less than a week if they lost their job tomorrow.

RELATED ARTICLE: 3 in 4 homeowners say “mortgage anxiety” is destroying their health

“This poll shows the aspiration to own a home remains strong, particularly among Millennials and Gen-Z, but belief that it’s achievable is far lower,” said McKinnon Poll Program Lead Matt Crocker.

“The Australian dream of owning your home is still important, but people face lots of barriers to make it a reality.

“High house prices are impacting both the life plans of younger people and the retirement plans of older people.

“This is a clear sign that our housing market has issues that need to be addressed.”

An analysis of interest rates, home prices and incomes adjusted for inflation shows that Gen Z has to pay up to 139 per cent of their average annual salary to fork out for a 20 per cent house deposit, with Millennials paying 122 per cent of their income.

This is compared to Gen X, who had to pay 94 per cent of their salary for a deposit and Baby Boomers, who had to pay just 35 per cent.

The older generation had to pay up to four times their average annual salary to pay off their mortgages, whereas Gen Z and Millennials face paying up to 11 times their average annual income for the total mortgage cost.

According to Mr Crocker, young Aussies were instead looking towards smaller high-density housing, such as townhouses and apartment blocks, to offset growing mortgage concerns. 

“There is a clear preference for more human-scale density in our suburbs. Younger people are more willing to see their suburbs change if it means better access to housing,” said Mr Crocker.

Share This Article
Jarrod Brown combines his background in journalism, copywriting and digital marketing with a lifelong passion for storytelling. He has a strong passion for new and emerging consumer technology within the building sector. He lives on the Sunshine Coast - usually found glued to the deck of a surfboard.