Younger Australians are thinking outside the square to start climbing the property ladder
For Millennials and Gen Z, entering the property market comes with challenges previous generations didn’t face. Property prices have outpaced wage growth, and saving a 20% deposit is harder than ever due to rising rents and living expenses.
The numbers tell the story. Forty years ago, the average Australian home cost around three times the average annual income. Today, that figure sits closer to eight to ten times annual income, depending on location.
The good news is that despite these obstacles, younger Australians are adapting and finding new ways to enter the market.
Where there’s a will, there’s a way
Millennials and Gen Z are approaching property ownership with a different mindset. They understand that prices aren’t dropping, so rather than viewing buying a home as a single milestone, they see it as part of a broader, longer-term journey.
This generation is also more open to professional guidance. Mortgage brokers, real estate agents, accountants and financial planners are increasingly involved earlier in the process, helping buyers understand borrowing capacity, risk, current buying options and future opportunities.
2026 property market challenges require a fresh way of thinking.
Five ways Gen Z and Millennials are buying homes
1. Co-investing with family or friends
Buying with parents, siblings or trusted friends allows young buyers to combine deposits and borrowing power, making entry into the market more achievable. Legal and financial advice helps protect all parties involved.
2. Rentvesting
Some buyers purchase an affordable investment property in a regional area while continuing to rent in their preferred suburb or even living at home with their parents. The rental income helps service the loan while equity builds over time and makes a subsequent purchase possible.
3. Using first home buyer schemes
Government incentives such as stamp duty concessions, shared equity programs and low-deposit schemes can significantly reduce upfront costs. They are subject to eligibility criteria, so it is important to get advice before making assumptions about what’s possible.
4. Building on existing family land
Granny flats, duplexes or subdivisions on parents’ larger blocks provide a lower-cost entry point and create long-term housing flexibility for families.
5. Investing through superannuation (SMSFs)
While you cannot buy a property to live in through super, some older Millennials are using SMSFs to invest in property as part of a long-term wealth strategy, with help from a specialist.
Other young buyers are choosing to relocate to new towns to enter a more affordable market, or going with a unit instead of a house and taking advantage of a lower-maintenance lifestyle. There is always a solution, it’s just a matter of exploring options and figuring out what’s possible.
Buying a home requires preparation, strategy and the right advice.
Want to discuss a plan for buying your first home? We can help, call us today
