Young buyers up their game

Despite ongoing affordability and tight supply, Gen Z are upping their home buying game. What’s driving it? The need for financial security and the desire to gain independence. Many are expanding location searches, targeting smaller deposits and changing their lifestyles to save more, all part of the push to buy their first home sooner.

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October 2025 – 2 minutes read

Gen Z leads surge in first home buying intentions as optimism grows among young Australians.

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Fast facts

35% of Gen Z plan to buy their first home in the next 5 years
17.5% is the average deposit for Gen Z first home buyers
53% of Gen Z plan to put down a deposit of less than 10%

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Case study: Gen-Z sisters get a foot in the door

For many young Aussies, buying a first home is tough. Sisters Hollie and Sam combined their incomes, cut back on expenses, and set a realistic deposit goal. This allowed them to buy an affordable apartment in Bentleigh.

First home buyer tips from Hollie and Sam:

Think about what owning a home means to you
Automate savings and track with calculators
Get pre-approval early to turn intent into action
Be flexible with location, size or properties that need a little work
Avoid surprises by understanding upfront costs.

James Hutton, Westpac Managing Director Mortgages

“Gen Z are leaning in despite higher hurdles. They’re maintaining flexibility in their plans, considering available support, and signalling they won’t stay renters forever. That upswing matters for supply and affordability conversations in Australia over the coming years.”

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What are Gen Z buyers doing?

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Changing preferences

Interest in buying a house down 3%, with interest in an apartment up 2%.

Search flexibility

80% are willing to consider different suburbs, widening their search.

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Lifestyle changes

80% actively changing their lifestyles to boost their deposit savings.

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Rent-vesting

55% are considering rent-vesting as a viable strategy to get into the market.

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Lower deposit

Nearly half of first home buyers are targeting a deposit of between 5% and 10%.

Bar chart titled Home buyer considerations comparing survey results from January 2025 and October 2025. Categories include buying a house (39% vs 40%), buying an apartment (17% vs 18%), considering different suburbs (82% vs 80%), cutting expenses (86% vs 80%), rent-vesting (54% vs 55%), and using a low deposit of 5%–10% (49% vs 47%). October values are shown in purple and January values in pink, sourced from Westpac Home Ownership Report.

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Biggest blockers?

For many first home buyers, the biggest barriers to home ownership remain:

Saving enough for a deposit
Limited property supply and strong competition
High property prices in preferred suburbs
Pressures from unpredictable interest rates.

With many planning a deposit of 10% or lower, options are further reduced. Add to that supply issues, it’s harder than ever to secure a property that meets buyers’ needs.

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Our home loan specialists love to help!

Have a question? Whether online or in person, we’ll support you at every stage of your home-buying journey by making it easy to connect in the way that suits you.

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Other guides to help

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Buying your first home

The key to a smoother experience is knowing what to expect. We're here to help every step of the way.

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