Keeping the “Australian Dream” of home ownership alive

Despite an ongoing housing crisis and tough economic times, one in six Australians are actively trying to buy their first property, and one in five say they aspire to own property in the future.

The findings from social researcher McCrindle are contained in a new report, “The Pulse of Australia's Property Market.” 

The study provides some fascinating insights into the way people view property, particularly younger Australians, who acknowledge they face significant barriers to owning their own home, but are prepared to consider more unconventional strategies to get around this obstacle.

The findings

It sounds like something straight out of the post-war era, but even in 2024, McCrindle finds the most common way a majority of Australians (67%) define the “Australian Dream” is home ownership.

Sadly though, it appears confidence in achieving that “Dream” is not high, with less than two in five non-homeowners who are in the market for property or who aspire to buy in the future being extremely or very hopeful about buying a home.

According to McCrindle, one in six Australians (17%) are currently in the market for their first property, and 20% aspire to own property in the future. 

Eight per cent of the people they surveyed already owned a home or an investment and were in the market for another property.

“The increased cost of living has placed a strain on many Australians, making home ownership goals feel out of reach for many people,” says McCrindle researcher Ashley Fell.

“The Australian Dream is prominent in society, however, financial pressures of housing affordability and cost of living pressures are making this dream difficult to achieve.”

Demand for a free-standing house in the suburbs also remains strong.

Australians are most likely to see high property prices as the biggest barrier facing first-home buyers (38%), followed by cost-of-living pressures (31%).

Interestingly, more than three in five Australians agree that most young people can only enter the property market with financial support from a relative or friend.

Gen Z and property

Given those broader gloomy findings, it may come as a surprise that younger Australians are more upbeat about home ownership than their older counterparts.

McCrindle researchers drilled down into what Generation Z (born 1995-2009) Australians think when it comes to property.

“Despite the current (housing) crisis, many Gen Zs have ambitions of entering the housing market,” the report says.

“One in three (34%) are currently in the market for their first property, either to live in or as an investment, while another 29% aspire to own property in the future.”

It finds that one-third of Gen Zs have already achieved this goal, with 19% owning a home outright, 13% owning a home with a mortgage, and 1% owning multiple properties.

“Young Australians are also considering unconventional routes to enter the housing market,” the report says.

It finds that 37% would be extremely or very likely to purchase a property with a family member such as a sibling or parent, while 34% of Gen Zs who currently don’t own their own home would be extremely or very likely to purchase a property with friends to split the cost.

The McCrindle research also shows the Gen Z cohort is very keen on the concept of “rent-vesting”.

“Rent-vesting is a common strategy that allows people to purchase an affordable property, while renting in a property or area that suits their lifestyle,” the report says. 

One-third of Gen Z (32%) are extremely or very likely to rent-vest, compared to 27% of Gen Y (born 1980-1995), 15% of Gen X (born 1965-1979) and 3% of Baby Boomers (born 1946-1964).

“A further three in ten Gen Zs are extremely or very likely to rent long-term without the aspiration of buying.” 

High-density living

There’s been a lot of media coverage lately about the need for higher-density living, particularly in our cities.

However, McCrindle found that among those who aspire to own property at some point in the future, just 15% say they are extremely or very likely to purchase in a high-density area.

Interestingly, for Australians looking to buy their first property, this increases to 41% and among non-home owners looking to buy an investment property, this increases to 44%. 

“This suggests that, as people start to realistically consider their home purchasing options, they are more likely to see high-density housing as a viable option,” the report says.

McCrindle also finds that Gen Z Aussies are most likely to strongly, somewhat, or slightly agree that the government should approve more high-density housing in popular suburbs (82% compared to 80% Gen Y, 73% Gen X, and 78% of Baby Boomers).

Not surprisingly, sentiment begins to shift when it comes to considering high-density housing in a person’s own local area, with fewer Australians feeling extremely, very or somewhat positive (70% Gen Z, 70% Gen Y, 49% Gen X, 43% Baby Boomers). 

Migration and housing supply

The McCrindle team also finds that while a majority of Australians feel migration has had a positive economic and cultural impact on the nation, they also believe it is adding pressure to the property market. 

One in three Australians believe migration has had an extremely or very negative impact on housing supply, and 31% believe migration has had an extremely or very negative impact on house prices.

Three in five strongly or somewhat agree that migration numbers should be significantly reduced so that the current infrastructure challenges and cost of living pressures are well managed. 

“When asked what could be changed to make buying a property easier in Australia, some advocate for implementing lower caps on immigration,” the report says.

64% strongly or somewhat agree that they are supportive of migration to Australia “as long as the numbers are not so high that it impacts our current liveability.” 

“This shows most people take a holistic view of migration which considers its economic and cultural benefits alongside its impact on housing pressures,” the McCrindle report concludes.