The home ownership dream feels out of reach for Millennials and Gen-Z

With property prices sitting at record highs, a growing number of younger Australians feel home ownership is increasingly out of reach.

The latest McKinnon Poll found only 59 per cent of Millennials and 63 per cent of Gen-Zs think they will own their own home.

That’s despite 88 per cent of Millennials and 93 per cent of Gen-Zs stating they would like to own a property.

According to the 3000-person poll, high property prices, rising interest rates, and lack of funds for a deposit are the biggest reasons younger generations feel the dream of homeownership is increasingly unrealistic.

The high cost of housing has also impacted the timing of key life events for 72 per cent of Millennials and Gen-Zs, such as moving out of home, changing careers or having children.

Meanwhile, only half of Australians with a mortgage expect to have paid it off by the time they retire. 

A further 11 per cent expect to keep working until their home is paid off and seven per cent don’t ever expect to pay their mortgage off. 

While 19 per cent expect either to downsize or live with their family.

McKinnon Poll Program Lead Matt Crocker said the Australian dream is getting harder to reach for many young people.

“This poll shows the aspiration to own a home remains strong, particularly among Millennials and Gen-Z, but belief that it’s achievable is far lower,” Mr Crocker said.

“The Australian dream of owning your home is still important, but people face lots of barriers to make it a reality.”

He said high house prices impacted both the life plans of younger people and the retirement plans of older people.

“This is a clear sign that our housing market has issues that need to be addressed,” he said.

The poll also found that terraces, townhouses and semi-detached houses were the most acceptable form of higher-density homes, followed by one to three-storey apartment blocks.

Younger people were also much more supportive of higher-density living in their neighbourhoods than older people.

Of those wanting to buy their own property, only 36 per cent in NSW want to see more semi-detached homes built in their local area. 

While 28 per cent in Victoria, 40 per cent in Queensland, 38 per cent in WA and 37 per cent in SA were happy with more high-density homes.

At the same time, 31 per cent in NSW want more flats or apartments in one to three-storey blocks.

Followed by 27 per cent in Victoria, 34 per cent in Queensland and WA and 26 per cent in SA.

“Younger people are more willing to see their suburbs change if it means better access to housing,” Mr Crocker said.

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