A survey of more than 1,000 Australians aged 18-25 by Lendlease has revealed eight in 10 of them dream of owning their own home, while almost half of them (47%) think they'll achieve that dream within the next five years. 

Overall, 79% of them think they will eventually own their own home. Of this 79%: 

  • One in six think they'll buy by the end of next year; and
  • Another third are confident they'll buy before the end of 2025

Lendlease Managing Director of Communities Matt Wallace says 2020 is the year for first home buyers to enter the market. 

"Not only are interest rates still near record lows, but first home buyers are able to take better control of their finances with a range of industry initiatives designed to help them out," Mr Wallace said. 

"We understand the many challenges facing first home buyers and are ready to help them get their foot on the property ladder." 

Looking to compare low-rate, variable owner-occupier home loans? Below are a handful of low-rate loans in the market.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Indeed, 25% of young Australians think 2020 is the time to enter the property market, while 30% are more confident in buying in the next 12 months compared to the past 12 months. 

That's despite the median house price continuing to rise in the latter half of 2019 to more than $545,600 nationally, according to CoreLogic. 

Interestingly, young Australians are skewed more towards building a new home (58%) than buying an existing one (42%), while the main reasons for buying included: 

  • Having a place to call their own (69%) 
  • Independence (52%) 
  • Raising a family (50%)
  • The security a home provides (49%) 

How are they saving? 

Saving for that initial deposit was identified as one of the most challenging obstacles, with 55% listing it as a struggle on the path to home ownership.

This makes sense considering a 20% deposit on that national median price of $545,600 is nearly $110,000.

To combat this lofty goal, Lendlease's research identified the top five ways young Australians are saving for a house deposit, with one in five supposedly "saving hard": 

  1. Cutting back on small expenses (e.g. cafes, eating out, etc.): 45%
  2. Saving money with their partner: 45%
  3. Opening a specific savings account: 36%
  4. Sacrificing a luxury expense (e.g. holiday, new car etc.): 35%
  5. Starting a side hustle: 24%

Lendlease social trends researcher Claire Madden was full of praise for the aptitude young Australians are showing in saving for a home. 

“Despite Gen Y and Z growing up with the rhetoric of rising housing and living costs, they are showing an optimism and resilience in holding onto the great Australian dream of home ownership," Ms Madden said. 

"Over four in five in our younger generations have the desire to own a home, and almost two in five are extremely or very optimistic that it will become a reality.

"Whilst saving for the deposit is seen by many as the biggest obstacle, these tech-savvy, agile and entrepreneurial generations are switched on to new opportunities and are likely to embrace the home-ownership deposit schemes and find a way to see the dream realised."

"Ok Boomer" 

Despite the optimism of young Australians, the sentiment towards older Australians, aka "boomers", hasn't really improved much. 

According to the participants, 79% of them believed the challenge of buying a home today is more difficult than it was for their parents' generation.

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