First-home buyer demand is rebounding just in time for the spring property season, according to the annual Generation Rent Report from Resolve Finance.
The report, based on a nationwide panel of more than 1,000 renters, found that 57% of renters plan to buy their first home or investment property in the next two years—up from 42% last year, a 36% increase.
Resolve Finance managing director Don Crellin (pictured) said the findings reflect a turning point in buyer sentiment.
“Many Australians, particularly younger buyers, are no longer waiting on the sidelines,” Crellin said.
“Instead, they are finding new ways to enter the market, from purchasing with family or buying an investment property first, to using government assistance. Some lenders are prepared to work with buyers to consider future rental income from spare rooms when assessing affordability.”
This renewed optimism comes as the government brings forward its expanded 5% deposit scheme for all first-home buyers, starting October 1. The scheme removes income caps and place limits, making it easier for more buyers to enter the market and avoid costly lenders mortgage insurance.
The highest proportion of renters planning to buy in the next two years was in the 35-to-49-year age bracket at 65%, followed by 25-34-year-olds at 62% and 18-to-24-year-olds at 54%.
Victoria emerged as the strongest market for aspiring first-home buyers, with 62% of renters planning to buy, compared to 56% in NSW and 54% in Queensland. Victorians in both metro and regional areas were the most likely to purchase (65% and 56% respectively).
While optimism is building, affordability pressures remain acute. Rapidly rising property prices were the most common barrier cited by Generation Rent (54%), followed by high rents (38%) and broader cost-of-living pressures, which have delayed buying plans for 65% of renters.
Saving remains the most common way to fund a deposit (82%), followed by government grants and schemes (36%) and family support (15%). Nearly half (48%) plan to buy alone, while 44% expect to buy with a partner.
Crellin said we’re seeing “a genuine first-home buyer comeback” this spring.
“Despite the challenges, more renters are determined to make the leap into homeownership,” he said.
“Not surprisingly, the timing aligns with increasing government support of the Housing Australia schemes, such as the First Home Guarantee scheme, designed to support first-home buyers.
“These survey results highlight our first-home buyers, resilience, creativity, and confidence in the future.”
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