Younger buyers becoming more flexible as interest in apartments, rentvesting grows
More than a third of Generation Z Australians are aiming to purchase their first home within the next five years, according to the latest Home Ownership Report from Westpac.
The proportion of Gen Zs (individuals aged 13 to 28) with plans to buy has increased by five percentage points since January 2025, reflecting a shift in sentiment even as affordability remains a concern.
The report indicates that a desire for greater financial security and independence is motivating this cohort, with 34% citing financial security and 37% seeking independence as key drivers. Additionally, 32% of Gen Z buyers are motivated by the wish to avoid long-term renting.
“Gen Z are leaning in despite higher hurdles,” said James Hutton (pictured right), mortgages managing director at Westpac. “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.”
Flexibility is evident in the approach of first-home buyers, with 80% open to purchasing in suburbs they had not previously considered. The same proportion are making lifestyle adjustments, such as reducing discretionary spending, to increase their savings.
Property preferences among Gen Z are also evolving. Interest in purchasing houses has declined by three percentage points since January, while interest in apartments has grown by two percentage points. More than half (55%) are considering rentvesting, a strategy that remains as popular as earlier in the year.
Deposit requirements continue to present a challenge. While most first-home buyers are targeting a 17.5% deposit, nearly one in three are aiming for a 10% deposit. Among Gen Z, 53% are proceeding with plans to buy with a deposit of 10% or less of the property price.
“Demand from younger buyers is picking up, and the expanded government guarantee is likely to fast‑track purchase decisions,” said Matthew Hassan, senior economist at Westpac.
“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.”
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