Home ownership is still alive in 2020

The Australian dream of home ownership is very much alive, according to our latest research. Not only do young Australians still dream of owning their own home - many are actively taking steps towards that goal in 2020.

The Australian dream of home ownership is very much alive, according to our latest research. Not only do young Australians still dream of owning their own home - many are actively taking steps towards that goal in 2020. 

The research, which was conducted by McCrindle, found that from over 1,000 Generation Y and Z Australians surveyed (aged 18-40), approximately eight in ten dream of owning their own home, with almost half (47 percent) believing they will own their own home within the next five years.  Overwhelmingly, the majority (79 percent) feel optimistic that they will own their own home in the near future. 

Importantly, our research also found the majority of young Australians surveyed would strongly opt to build a new home with a reputable Australian property developer, over purchasing an existing home. 

Lendlease’s Managing Director of Communities, Ben Christie, said, “The consumer research we have conducted reveals 2020 as the year for first home buyers to jump onto the property ladder. We understand the many challenges first home buyers are faced with and are ready to help them get into the property market. Lendlease is offering a range of incentives across each of our communities to help fast-track the home-buying process.”

One of the most challenging obstacles young Australians face is saving for a deposit, however our research shows that more than half are actively saving for their first home by cutting back on small expenses, such as brunch dates or coffee, saving with a partner and sacrificing luxury expenses. The ‘Bank of Mum and Dad’ is also helpful but relied upon by a smaller portion of Generation Y and Z, whether that be by choosing to live at home with parents or through financial support. 

Social trends demographer and generational expert, Claire Madden, worked closely with our team on this research piece and explained, “Despite Gen Y and Z growing up with the rhetoric of rising housing and living costs, they are showing an optimism and resilience in holding onto the great Australian dream of home ownership. Whilst saving for the deposit is seen by many as the biggest obstacle, these tech-savvy, agile and entrepreneurial generations are switched on to new opportunities and are likely to embrace the home-ownership deposit schemes and find a way to see the dream realised."

When it comes to location, it’s no surprise that property prices are encouraging many young Australians to consider living on the fringes of a city and in non-major capital cities. Living sustainably is also front of mind, with a quarter of young Australians more likely to choose a location that allows them to reduce their environmental impact and live more sustainably. 

Our consumer research coincided with the federal government’s First Home Loan Deposit Scheme, launched in partnership with the National Housing Finance and Investment Corporation in January this year, to support eligible first home buyers purchase a home sooner.