Younger generations holding on to home ownership dreams

Digital bank – ubank – has unveiled new research revealing that despite facing significant challenges, Gen Z and Millennials remain hopeful about achieving home ownership.

The research indicated that the Australian aspiration for home ownership is alive, with over half (56 per cent) of Gen Z and Millennial non-home owners aiming to secure a home within the next five years.

Additionally, 89 per cent of this demographic considers home ownership one of its life goals.

However, the study highlighted considerable hurdles that could stand in the way of younger generations finally entering the property market.

An overwhelming 95 per cent of non-home owners identified barriers to home ownership: primarily high property prices (63 per cent), difficulties in saving for a deposit (42 per cent), and high interest rates (39 per cent).

The research also sheds light on the stress and confusion associated with the home buying process. Among prospective buyers, 76 per cent reported feeling stressed about the process.

Furthermore, 79 per cent of both home owners and prospective buyers found the terminology and jargon used in the home buying process confusing, with terms such as ‘break costs’, ‘LVR’, and ‘redraw facility’ being particularly perplexing.

ubank’s findings come as it recently announced several interest rate decreases to some of its home lending products, such as decreases to its variable Flex rates for new customers and decreases to fixed Flex rates for owner-occupier and investor loans across one- to five- year terms.

This research from ubank comes as data from Mortgage Choice revealed that 43 per cent of Australians are in the market to buy a home, with 19 per cent of those intending to buy a property during this year’s spring selling season.

Additionally, Loan Market research has found a spike in pre-approval demand leading up to spring, showing a 23 per cent increase in finance pre-approvals as buyers gain more confidence from a rise in property listings leading up to September.

According to the brokerage, over the past 30 days, nearly a quarter more buyers have prepared to enter the real estate market compared to the same period last year, securing pre-approvals in anticipation of upcoming auctions and new listings.

[RELATED: How are brokers helping buyers gear up for spring]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.