“Generation rent” is proving far more resourceful than the name suggests.
According to Great Southern Bank’s latest “No Place Like Home” report, Gen Z and Millennials are adopting creative and pragmatic strategies to achieve homeownership despite soaring property prices and cost-of-living pressures.
The findings are based on a survey of 2,000 Australians conducted in February.
Over one-third of Millennials (34%) and Gen Z (36%) are planning to purchase an investment property within the next three years, showing that property is still seen as a viable path to wealth creation for younger Australians.
“In order to achieve homeownership, younger generations are showing remarkable resilience and creativity,” said Rolf Stromsoe (pictured), chief operating officer of Great Southern Bank.
“More than any other demographic, they are looking for investment opportunities in property. ‘Generation Rent’ is also adopting some clever, realistic strategies like leaning on family for support or opting for a more modest property, in order to secure their future home.”
To break into the market, 60% of young buyers have chosen more modest housing options such as smaller houses or flats.
Meanwhile, 35% have bought property with a partner, and 27% have co-purchased with friends or siblings, showing how flexibility and collaboration are helping them overcome affordability challenges.
Another significant factor is family support—around one-third (35%) have sought help from the Bank of Mum and Dad, underscoring the importance of intergenerational assistance in today’s market.
Mozo’s latest report showed that this support is evolving—from loans to outright gifts. In 2021, only a third of parents gave money without expecting repayment; now it’s three quarters, reflecting a shift from financial help to lasting legacy, according to Mozo personal finance expert Rachel Wastell.
“Starting your financial journey sooner rather than later can make a difference,” Stromsoe said. “It can cut the amount of time and money spent on rent and get people on the property ladder much faster.”
Despite their resourcefulness, the report uncovered a concerning trend: 46% of Australians believe they need at least $100,000 in savings before seeking financial advice. This misconception may delay their path to homeownership.
On a positive note, Gen Z, renters, and first-home buyers are more likely to seek advice early, often with more modest savings, indicating a proactive mindset among younger cohorts.
To support these aspiring buyers, Great Southern Bank, formerly CUA, offers a range of solutions including:
