Gen Z hungry to buy homes: Westpac

New data has revealed that home buying confidence among Gen Z adults (those born between the mid-1990s and early 2010s) has surged this year, with more young adults aiming to buy their first property in the next five years.

According to Westpac’s latest Home Ownership Report, more than one in three (35 per cent) Gen Z Australians plan to buy their first home within five years, up by 5 percentage points since January 2025.

According to the Home Ownership Report, 37 per cent want to buy a home in a desire for independence, and 34 per cent of buyers want to feel more financially secure, while just under a third (32 per cent) do not want to rent forever.

However, in contrast, the option to rentvest has maintained its popularity since January, with more than half of Gen Z buyers – 55 per cent – still considering the strategy.

The report also found that a drive to buy sooner meant there was increased flexibility among younger Australians, with 80 per cent being open to purchasing in suburbs they hadn’t previously considered.

Gen Z buyers have also compromised on property types, with interest in buying a house falling by 3 per cent since January, while plans to purchase an apartment have increased by 2 per cent.

Additionally, the data showed 80 per cent of first home buyers in general have been making active lifestyle changes to boost their savings, such as cutting back on non-essentials like food delivery.

Despite their determination, the financial challenges of affording a home persisted, with nearly a third of all first home buyers targeting deposits of 10 per cent. Most first home buyers aim for a 17.5 per cent deposit, according to Westpac.

Comparatively, out of the Gen Z cohort, 53 per cent of buyers have aimed for a deposit of 10 per cent or less of the purchase price.

James Hutton, Westpac’s managing director of mortgages, commented: “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.”

Westpac senior economist Matthew Hassan added: “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.”

[Related: Mortgage applications soar to 4-year high]