There’s a noticeable uptick in Australians planning to buy homes within the next five years, with 44% intending to purchase, marking a 9% increase since July 2023, according to the 2024 Westpac Home Ownership Report.
Moreover, there have been increases in those planning to buy investments (+6%), upsize (+4%), and renovate (+4%).
Contrastingly, first-home buyers face hurdles, with Australians aiming for homeownership in the next five years dropping by 3%, and with 86% acknowledging that recent cost-of-living pressures have postponed their plans to buy a home.
Aspiring homeowners are adopting creative strategies and compromises to afford homes despite rising costs. More than half (56%) plan to purchase with a partner, a 16% increase, while 75% are open to buying in previously unconsidered locations (+9%), and 50% are exploring “rent-vesting” as a path to ownership, the Westpac study showed.
Furthermore, 47% of Australians are open to paying for lenders mortgage insurance to expedite their first home purchase, and 65% are reducing discretionary spending, such as on food delivery, to save for a down payment.
Damien MacRae (pictured above), managing director of mortgages at Westpac, highlighted buyers’ readiness to make sacrifices and seek alternative paths to achieve homeownership.
“While some buyers have paused their housing plans, the intention to buy remains strong and prospective buyers are becoming more ruthless with their goals,” MacRae said in a media release. “They understand it’s a big task, but they are determined to break into the market and are willing to compromise to get there.
“Buyers are casting their expectations wider, willing to compromise on location and are forgoing everyday luxuries like food delivery. They are also more inclined to relocate and move to apartment living.”
The Westpac report also identified a shift in property preferences: while houses remain favoured, their preference has dropped by five percentage points since 2021.
In contrast, interest in apartments and units has risen by 7%. Additionally, the preference for townhouses has doubled, and the desire for house and land packages has quadrupled.
“During the pandemic, we saw more buyers seeking property further from the city in pursuit of more space. However, it appears buyers are willing to concede on location in order to get a foot in the door,” MacRae said.
MacRae stressed the need for concerted efforts to address housing supply shortages to support the growing buyer confidence.
“We welcome federal and state government initiatives which seek to address this, and now need businesses and government at all levels to progress with implementing these policies at pace,” he said.
Westpac noted an uptick in customers using budgeting tools and setting home-related savings goals, underlining the proactive measures Australians are taking to navigate their path towards homeownership. The bank offers various calculators and resources to assist in planning and understanding financial commitments involved in buying a home.
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