Millennials are not only leading the property investment market but also prefer investing solo, according to recent data from CommBank.
Millennials at the forefront of property investment
According to the CommBank data, millennials, born between 1981 and 1996, emerged as the leading demographic in property investment in 2023, accounting for 46% of all new property investors.
They were followed by Generation X, born between 1965 and 1980, who represented 37% of the new investment property purchases.
“From our data, we can see that almost one third of all millennial property investors actually purchased their investment property on their own,” said Michael Baumann (pictured above), CommBank’s EGM home buying.
The average age of property investors was identified as 43 years, with the average loan size for property investments exceeding $500,000. This reflected a robust engagement with the property market, with investors driving a significant portion of new lending.
ABS reported an 18.5% growth in lending to investors over the past year, overshadowing the increases in lending to first-home buyers (+13.2%) and owner-occupiers (+3.4%).
A notable trend among Australian investors is the strategy of “rentvesting” — purchasing property in more affordable areas while continuing to rent in preferred locations.
“Rentvesting gives Australians the chance to get their foot on the property ladder sooner rather than later and purchase a property in a lower-cost area without having to give up the lifestyle they have become accustomed to when renting,” Baumann said.
The top postcodes for new property investments in 2023 were predominantly located in Sydney and Melbourne, with Sydney CBD (2000), West Melbourne (3029), North West Sydney (2765), North Melbourne (3064), and North West Sydney (2155) leading the charge. These areas have consistently attracted investors, with three of the top postcodes from 2019 remaining on the list in 2023.
To read the full report, visit the CommBank website.
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