Bankwest’s Home Truths research has highlighted that young home buyers in Western Australia are increasingly ready to forgo aspects of their dream home to manage cost-of-living pressures and secure a place in the property market.
The survey gathered responses from over 1,700 Australians, focusing on WA, to understand the current and aspiring homeowners' needs and attitudes.
The survey revealed that 78% of WA’s Millennials (27-42) and Gen Z (18-26) are prepared to sacrifice property features or even property type to afford a house, a notable increase from 67% in the previous survey.
“The current heated property market, combined with cost-of-living pressures, has not dented home buyers’ aspirations, but we can see they are becoming more willing to sacrifice certain features to get into their own home," said Jodene Murphy (pictured above), Bankwest general manager customer, marketing, and communications, in a media release.
Western Australians intending to buy a house in the next five years showed a growing willingness to compromise on location and property size to find affordable options. The survey indicated that 38% are willing to move to cheaper suburbs (up from 33%), and 36% are open to buying smaller properties (up from 30%).
Interestingly, while 42% of east coast buyers are willing to give up luxury features like pools or decks (up from 32%), this willingness decreased among WA buyers (33%, down from 39%).
However, WA’s younger generations showed stability in their readiness to sacrifice luxury features, with Gen Z at 44% (up from 41%) and Millennials at 33% (up from 29%).
Murphy noted the adaptability of homebuyers.
“We consistently see homeownership as important to Australians, regardless of the property market or economic conditions at any given time, and what changes is how aspiring home buyers adapt to those situations,” she said.
The survey also highlighted a major shift for WA's aspiring Gen Z homeowners, with 43% (up from 28%) willing to buy smaller properties. Millennials in WA showed increased willingness to buy in cheaper suburbs to afford a property, rising to 39% from 36%.
The importance of a safe location for Gen Z in WA dropped significantly, with only 32% considering it crucial (down from 47%), compared to 50% of Millennials.
Additionally, the inclination to move from city to country decreased among Gen Z from 20% to 16%, suggesting a decline in the COVID-inspired “tree change” trend.
“Bankwest strives to be a simple, easy bank for more homeowners across the country, with Home Truths showing the great Australian dream is alive and well," Murphy said.
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