Younger consumers in Australia, particularly Gen Z, are now said to be leading the surge in first home buying intentions as the overall optimism grows among young consumers. As reported by Westpac, around 35% of Gen Z’s now intend to acquire a first home in the next 5 years – up around 5% since January of this year, seemingly signaling confidence in home ownership among young Australian consumers.
According to Westpac’s insights, the demographic may be seeking financial security and independence which are cited as potentially the primary drivers for wanting to own property / real estate.
Although the average first home buyer is aiming for a somewhat modest 17.5% deposit, the majority or more than half of Gen Z’s are “targeting a deposit of 10% or less.”
Over one in three (35%) Gen Z Australians plan “to buy their first home within five years,” according to Westpac’s Home Ownership Report. Intentions have jumped a bit since January 2025, indicating a wave of increasing confidence despite “ongoing affordability challenges.”
The seemingly renewed optimism among Gen Z is being “driven by wanting to feel more financially secure (34%), up three per cent on January figures, and a desire for independence (37%).” Just over one third (32%) of Gen Z buyers are motivated “by not wanting to rent forever.”
James Hutton, Westpac Managing Director, Mortgages said:
“Gen Z are leaning in despite higher hurdles. 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.”
The drive to buy sooner is driving flexibility, with the vast majority or “80 per cent of all first home buyers open to purchasing in suburbs they hadn’t previously considered, and another 80 per cent actively changing their lifestyles – cutting back on non-essentials like food delivery to boost savings.”
Gen Z buyers are also reshaping their “property expectations.”
Overall interest in buying a property has slipped “three percentage points since January, while plans to purchase an apartment have risen by two per cent. More than half of Gen Z buyers (55%) are even considering rent-vesting – a strategy that’s held in popularity since January.”
According to the research, deposit hurdles “remain for many.”
Although most first home buyers aim for a “17.5 per cent deposit, nearly a third are targeting ten per cent.” For Gen Z buyers, 53 per cent are “moving ahead with plans for a deposit of 10 per cent or less of the purchase price.”
Westpac Senior Economist Matthew Hassan remarked:
“Demand from younger buyers is picking up, and the expanded government guarantee is likely to fast‑track purchase decisions. 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.”
The research was commissioned by Westpac and conducted by Lonergan Research in accordance “with the ISO 20252 standard.”
Lonergan Research surveyed 2,000 Australians that are “aged 18+ with surveys distributed throughout Australia including both capital city and non-capital city areas.”
The survey was conducted online amongst “members of a permission-based panel, between 19th Sept and 29th Sept ’25.”
After interviewing, data was reportedly weighted to “the latest population estimates sourced from the Australian Bureau of Statistics.”