Are Australians Still Dreaming of Home Ownership?

Ownership Is Still the Goal—But It’s Changing Shape

Surveys and market data suggest that home ownership remains a strong aspiration for most Australians. Despite the challenges, many people still regard it as a long-term priority, even if the path to achieving it looks different from previous generations.

Younger buyers, in particular, are adjusting their expectations. For some, it’s no longer about owning the perfect house in the perfect suburb but simply gaining a foothold in the market. That might mean buying smaller, purchasing further out, or investing first and renting elsewhere—a trend often referred to as “rentvesting.”

The Impact of Affordability

Property prices across major cities—especially Melbourne and Sydney—have made it difficult for first-time buyers to compete without assistance. Deposit sizes have grown significantly, and mortgage serviceability remains a concern in the current interest rate environment.

Government schemes such as the First Home Guarantee and stamp duty concessions are helping, but they only go so far. For many, parental support (whether in the form of a gift, loan, or guarantor arrangement) is now a key enabler.

The Rise of Long-Term Renting

As barriers to entry increase, long-term renting is becoming a more accepted norm—particularly in urban areas. A growing segment of Australians are choosing to rent not out of necessity, but because it offers greater flexibility and access to inner-city lifestyles that would otherwise be out of reach.
This shift has also increased demand for higher-quality rental properties, especially those that offer good amenity, liveability, and proximity to work or transport.

Ownership vs. Investment

There’s also a noticeable trend towards seeing property less as a place to live and more as a means to build wealth. Many younger Australians are entering the market as investors, using rental income to offset mortgage repayments while continuing to live elsewhere—often closer to the city or work.

This approach allows them to benefit from capital growth without needing to compromise on lifestyle in the short term.

What This Means for the Market

While the ideal of owning your own home hasn’t disappeared, the way Australians think about property is clearly shifting. Flexibility, strategy, and financial planning now play a much greater role in how people enter and participate in the housing market.

At MRE, we continue to see strong interest from both owner-occupiers and investors. Demand for well-located, well-maintained properties remains steady, and clients are increasingly seeking advice not just on where to buy, but how to build a plan that suits their circumstances.