Gen Z eyes property market: Bankwest

According to Bankwest’s latest Home Truths research, which surveyed over 1,700 Australians, particularly focusing on Western Australia, there’s a notable increase in financial confidence among Gen Z individuals aged between 18 and 26.

This younger generation is showcasing enhanced resilience and determination in their pursuit of home ownership.

Despite nearly half of Gen Z respondents being adversely affected by rental pressures, a striking 53 per cent remain optimistic about their capability to save money, signalling the growing fortitude among younger potential home buyers, the report noted.

Bankwest general manager, customer, marketing, and communications Jodene Murphy said: “We know many Western Australians are finding it difficult in the current housing market, whether building in a rising interest rate environment or facing into the extremely low rental vacancies in the state.

“However, these results also show us that there is a surge in confidence in the youngest generation of aspiring home buyers.”

Notably, Gen Z isn’t just displaying resilience, but is also backing it up with action. The percentage of young aspiring home owners actively engaged in the property market or diligently saving has soared by 9 percentage points, reaching a significant one-in-two individuals (49 per cent).

Furthermore, their confidence in comprehending financial matters has risen by 7 percentage points from the previous year, standing at an impressive 64 per cent – equivalent to Millennials and surpassing Gen X (62 per cent), both of whom experienced declines year on year.

Contrary to other demographics, Gen Z is the only generation witnessing growth in confidence regarding their saving abilities, edging up by 2 percentage points to 55 per cent.

“It’s very much the opposite experience of Millennials, whose experience prior to the past 18 months was one of decreasing interest rates, with many having never experienced significant increases in their mortgage repayments,” Ms Murphy said.

“That stability within instability for Gen Z has potentially enabled them to adapt quicker to current circumstances and we can now see young home buyers growing in confidence, while other generations either stagnate or decline.”

Recent data from MyState Bank aligned with this trend, revealing that 43 per cent of mortgage holders have actively sought a better deal within the last six months, with younger generations displaying a higher inclination to do so.

Research conducted by the bank unveiled that within the last six months, 50 per cent of Millennial and Generation Z mortgage holders have actively searched for improved home loan deals, compared to 37 per cent of Generation X and 31 per cent of Baby Boomers.

The nationwide survey further highlighted regional disparities, indicating that mortgage holders in NSW (32 per cent) and Victoria (31 per cent) were more likely to seek better deals within the last six months compared to those in Queensland (20 per cent) and Western Australia (16 per cent).

[Related: Confidence in property sector lifts despite lingering concerns: PCA]

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