15 November 2025
- 35% of Gen Z's plan to buy a first home in the next five years - up 5% since January, signalling growing confidence in home ownership among young Aussies.
- Seeking financial security and independence among the top drivers for wanting to own a home.
- While the average first home buyer is aiming for a 17.5% deposit, more than half of Gen Z's are targeting a deposit of 10% or less.
The renewed optimism among Gen Z is being driven by wanting to feel more financially secure (34%), up three per cent on January figures, and a desire for independence (37%). Just over one third (32%) of Gen Z buyers are motivated by not wanting to rent forever.
"Gen Z are leaning in despite higher hurdles," said James Hutton, Westpac Managing Director, Mortgages.
"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."
The drive to buy sooner is driving flexibility, with 80 per cent of all first home buyers open to purchasing in suburbs they hadn't previously considered, and another 80 per cent actively changing their lifestyles - cutting back on non-essentials like food delivery to boost savings.
Gen Z buyers are also reshaping their property expectations. Interest in buying a house has slipped three percentage points since January, while plans to purchase an apartment have risen by two per cent. More than half of Gen Z buyers (55%) are even considering rent-vesting - a strategy that's held in popularity since January.
According to the research, deposit hurdles remain for many. While most first home buyers aim for a 17.5 per cent deposit, nearly a third are targeting ten per cent. For Gen Z buyers, 53 per cent are moving ahead with plans for a deposit of 10 per cent or less of the purchase price.
"Demand from younger buyers is picking up, and the expanded government guarantee is likely to fast‑track purchase decisions," said Westpac Senior Economist Matthew Hassan. "Affordability and supply remain big challenges for buyers. Listings are scarce, forcing many to broaden their search to new areas and property types. Addressing entrenched undersupply is a priority for governments, but material improvement is going to take time."
Westpac offers a comprehensive suite of tools and resources to help first home buyers succeed - from savings plans and popular government scheme guidance, to calculators, pre-approval options, and lenders mortgage insurance, to make the journey to home ownership simple and achievable.
Top tips for aspiring first home buyers:
- Kickstart your savings journey: Set a clear deposit goal and use Westpac's savings tools to build good habits. Explore bonus interest accounts and calculators to track progress.
- Check your scheme eligibility: Government support initiatives like the 5% Deposit Scheme can help you buy sooner with a smaller deposit and no LMI.
- Understand upfront costs: Use Westpac's calculators to estimate stamp duty, LMI, and other costs before committing. Knowing these will aid planning.
- Get pre-approval: Approval in principle gives confidence when house-hunting and helps ensure you are ready when the right property comes along. Westpac offers simple online applications.
