Young Western Australians continue to hold onto their dream of owning their own home, despite significant pressure from economic headwinds, research from Bankwest’s Home Truths series has found.
Bankwest’s Home Truths survey of more than 1,700 Western Australians showed that despite the current economic pressures, young Western Australians still haven’t given up on their dream of having their own home, with 73% of Gen Z and 57% of Gen Y still considering the goal as important.
It was also clear, however, that current and next-generation homebuyers were feeling the impact of rising interest rates, increasing inflation, cost-of-living pressures, and tightening property markets, with only 50% of WA Gen Z (14 to 25 years old) and 46% of Gen Y (26 to 41 years old) respondents feeling that homeownership was achievable. The pressures were most felt by millennials – the current generation of homebuyers – who rated achievability at 46%. That’s a 25% drop from the previous year’s results.
Young West Aussies also appeared concerned about housing supply and construction delays, and affordability, with 36% of Gen Z and 46% of Gen Y having made significant changes due to interest rate rises. Some 19% of zoomers and 10% of millennials delayed or cancelled plans to buy a home, while 16% of zoomers and 23% of millennials cancelled or delayed major household spending.
The study also found that construction delays have resulted in only a quarter of in-market Western Australian home buyers saying they are likely to build – a 14-point drop from the previous year’s result.
“The current combination of housing and rental pressures, ongoing supply chain challenges, and inflation is posing some challenges for most Australians,” said Peter Bouhlas, Bankwest general manager for home buying. “Western Australia’s current and next generation of home buyers are on the frontline of these impacts, with many having never experienced a rising rate market in their homeownership journey. It is promising to see that, despite these pressures and economic headwinds, young Western Australians have not given up on the dream of owning their own home, and it’s important they are supported in navigating that goal. We believe challenging economic conditions may be here to stay for a while, so we encourage all customers to ensure they are in the best possible financial position and contact us immediately if they require support.”
