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Australians are reprioritising their financial goals for 2025, with nearly half choosing to save for travel over buying property—a shift that could spell trouble for the mortgage industry.
According to a recent Money.com.au survey, only 25% of respondents are directing their savings towards property. Finance expert Sean Callery attributes this trend to changing attitudes.
"Travel is clearly a priority for Australians heading into 2025, ahead of other major financial goals like buying a house or investing. This highlights a growing trend of valuing experiences and making memories, alongside traditional financial security and planning for tomorrow,” Callery said.
For industries tied to the property market, the shift could be worrying. With one-third of Australians reporting they save up to a year for a trip, the growing focus on short-term goals like travel suggests long-term investments such as mortgages may be falling out of favour.
Even more concerning for the mortgage industry is the generational breakdown of the survey. While Baby Boomers led the pack in prioritising travel savings at 54%, younger generations were not far behind—52% of Gen Z, 48% of Millennials, and 47% of Gen X also chose holidays over property. With younger Australians struggling to break into the housing market, saving for travel may appear more realistic than pursuing home ownership, potentially prolonging the slowdown in property demand.
Geographically, Western Australians are leading the shift towards holiday savings, with 54% prioritising travel. Queensland follows closely at 53%. Residents of South Australia and New South Wales were only slightly less inclined at 47% and 46%, respectively.
The relative affordability and accessibility of popular travel destinations like Bali and Singapore for Western Australians could be influencing this trend, as noted by Callery.
Even rising travel costs have not deterred Australians from focusing on holidays. Despite an 8% increase in travel and accommodation prices in the year to October 2024, domestic tourism spending surged to $160.2 billion in the 2023/24 financial year, contributing to a 9.1% growth in tourism GDP.
This willingness to absorb higher travel expenses may indicate a longer-term shift in financial priorities, potentially leaving housing demand on shaky ground.
