Matthew Hassan
More than one in three (35%) Gen Z Australians plan to buy their first home within five years, according to Westpac’s latest Home Ownership Report. Intentions have jumped five percentage points since January 2025, signalling a wave of growing confidence despite ongoing affordability challenges.
The renewed optimism among Gen Z is being driven by wanting to feel more financially secure (34%), up three per cent on January figures, and a desire for independence (37%). Just over one third (32%) of Gen Z buyers are motivated by not wanting to rent forever.
“Gen Z are leaning in despite higher hurdles,” said James Hutton, Westpac Managing Director, Mortgages.
“They’re maintaining flexibility in their plans, considering available support, and signalling they won’t stay renters forever. That upswing matters for supply and affordability conversations in Australia over the coming years.”
The drive to buy sooner is driving flexibility, with 80 per cent of all first home buyers open to purchasing in suburbs they hadn’t previously considered, and another 80 per cent actively changing their lifestyles – cutting back on non-essentials like food delivery to boost savings.
Gen Z buyers are also reshaping their property expectations. Interest in buying a house has slipped three percentage points since January, while plans to purchase an apartment have risen by two per cent. More than half of Gen Z buyers (55%) are even considering rent-vesting – a strategy that’s held in popularity since January.
According to the research, deposit hurdles remain for many. While most first home buyers aim for a 17.5 per cent deposit, nearly a third are targeting ten per cent. For Gen Z buyers, 53 per cent are moving ahead with plans for a deposit of 10 per cent or less of the purchase price.
“Demand from younger buyers is picking up, and the expanded government guarantee is likely to fast‑track purchase decisions,” said Westpac Senior Economist Matthew Hassan. “Affordability and supply remain big challenges for buyers. Listings are scarce, forcing many to broaden their search to new areas and property types. Addressing entrenched undersupply is a priority for governments, but material improvement is going to take time.”