Affordability squeeze and rising cost pressures weigh on borrower sentiment
Almost one in two Australians no longer believe they will ever purchase a home, according to new research that underlines the depth of the housing affordability challenge facing prospective borrowers.
A national survey by insurance provider Youi found that 46% of respondents did not think they would be able to buy a home, while 42% reported their financial position had deteriorated over the past two years. A further 11% said home ownership was unlikely for them in the next decade, and only 5% felt confident about buying a property in 2026.
PropTrack’s latest housing affordability report has shown that a typical Australian household can now afford only 15% of homes sold nationally, compared with 43% four years ago when mortgage rates were at record lows. This contraction in purchasing power highlights the constraints facing first-home buyers and upgraders as borrowing capacities weaken and prices remain elevated.
The Youi survey also outlined the broader financial pressures shaping household decision-making. The top concerns were managing day‑to‑day living costs (61%), housing‑related expenses (39%) and maintaining adequate savings (36%). By contrast, fewer respondents were focused on reducing spending on insurance (16%) or gym memberships (17%), with many instead trimming discretionary outlays.
According to Youi chief customer officer Anthony Antonucci, borrowers are moving from reactive cost‑cutting towards prioritising core needs. “Aussies are under real pressure, but we’re seeing a shift from reacting to costs to protecting what matters most,” he said.
The survey also captured how some households had strengthened their finances despite the challenging environment. Of those who said their situation had improved over the past two years (about one third of respondents), 44% attributed this to cutting expenses and following a budget. Another 40% pointed to changes in their spending habits, while 36% said they had become more organised.
Looking ahead, the main financial goals cited were building savings (24%), reducing expenses (20%) and increasing income (13%).
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