Gen Z still hungry for property despite obstacles

Young Australians are just as enthusiastic as older generations when it comes to property, with more than 71 per cent of 14-22 year olds saying they would like to own a home in the future according to a national survey by Bankwest.

At the same time, it looks like the majority of Gen Z is acutely aware of the challenges ahead of them. Only six per cent of the cohort believe buying a home will be easily achievable, and three per cent said it would be impossible altogether.

While there are government programs aimed at helping first home buyers, such as the First Home Loan Deposit Scheme, news of ever-increasing property prices may have dampened some of the enthusiasm young Australians initially had.

Bankwest general manager of home buying Peter Bouhlas also points out that Gen Z is less insulated against economic shocks than the rest of the workforce. Among all age groups, Gen Z was most likely to feel negative about their job security (36 per cent).

“We know the challenges of 2020 remain for many, and Gen Z, representing much of the young, casualised workforce of the country, often balancing study commitments, are greatly impacted by those challenges,” said Bouhlas.

“These results show how young Australians face the multiple pressures of increased financial strain, a fall in confidence for job security, and an understandable increased negativity towards the property market.”

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Adding to these challenges is a lack of financial literacy. 18 per cent admitted to lacking confidence when it comes to managing their finances, and 19 per cent said they often struggle to understand money matters.

What’s more, 18 per cent of Gen Z respondents admitted to making an impulse purchase in the past three months that they later regretted, compared to eight per cent on average.

Despite this, Bouhlas said there were still positive conclusions to be drawn from the survey results, including Gen Z’s willingness to reach out to those close to them for guidance on financial matters.

Among respondents, 38 per cent had discussed their finances with family in the past three months (compared to the average of 23 per cent) and 28 per cent had the same talk friends (compared to the average of 16%).

“It’s promising that more than a quarter of Gen Z had spoken to others about their financial position and that they don’t believe today’s challenges will prevent them from pursuing home ownership in the future,” said Bouhlas.

“It could be the case that the current low interest rate environment is contributing to the sentiment that home ownership remains achievable and helping Gen Z understand those factors is key for financial institutions.”

For tips to get your finances in order, browse our guide to saving in 2021. And if you’re after an idea of where mortgage rates currently sit, head over to our home loan comparison page, or check out the selection below.