Gen-Z ‘Zoomers’ still focused on home ownership despite pressures

 2 March 2021

A national survey by Bankwest has revealed Australia’s next generation of home buyers, often referred to as ‘Zoomers’, is intent on home ownership, despite being challenged by the goal, and feeling financial stress.

The survey of more than 1600 Australians showed home ownership remained a priority for the majority of Gen Z respondents, with 71 per cent of those aged 14-22-years-old interested in owning a home in the future.

The group was optimistic in the dream, with just three per cent stating it would “never be achievable” (against 17% average), but recognised the challenge, with only six per cent feeling it was “easily achievable” (v 35%).

The survey also highlighted the significant financial literacy and confidence challenges facing Zoomers.

The group was significantly over-represented across many confidence areas, with more than a third feeling negative about their job security (36% v 19%) and the state of the property market (35% v 22%).

About a fifth lacked confidence in managing money (18% v 10%) and understanding money matters (19% v 11%), while the same number made an impulse purchase in the past three months they regretted (18% v 8%).

However, Gen Z appeared open to support and many were actively seeking it, with 38 per cent having discussed their finances with family (v 23%) and 28 per cent with friends (v 16%) in the past three months.

Bankwest General Manager Home Buying Peter Bouhlas said: “Every generation of Australians maintains the dream of buying their first home, but it’s clear the next generation feels this is increasingly challenging.

“We know the challenges of 2020 remain for many, and Gen Z, representing much of the young, casualised workforce of the country, often balancing study commitments, are greatly impacted by those challenges.

“These results show how young Australians face the multiple pressures of increased financial strain, a fall in confidence for job security, and an understandable increased negativity towards the property market.

“But it’s promising that more than a quarter of Gen Z had spoken to others about their financial position and that they don’t believe today’s challenges will prevent them from pursuing home ownership in the future.

“It could be the case that the current low interest rate environment is contributing to the sentiment that home ownership remains achievable and helping Gen Z understand those factors is key for financial institutions.”


Ganeration Age Brackets

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  Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Age 14-22 23-38 39-53 54-73 74+
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Are you interested in owning your own home in the future?

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Response Average Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Yes, I’m currently in the market to buy
11% 4% 11% 15% 14% 9%
Yes, but I’m saving a deposit 15%
27% 32% 17% 4% 0%
Yes, but I’m yet to start saving 18%
41% 25% 20% 8% 4%
NET  YES 44% 71% 68% 52% 25% 14%
No 56% 29% 32% 48% 75% 86%
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Do you believe home ownership is achievable for you?

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Response Average Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Yes, it’s easily achievable for me 35% 6% 14% 21% 57% 68%
Yes, but it will be challenging 18%
38% 28% 20% 7% 4%
Not sure 14%
19% 20% 17% 8% 6%
No, it’s not achievable right now 16% 34% 22% 17% 8% 6%
No, it will never be achievable 17% 3% 16% 24% 19% 16%
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Confidence Markers

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How positive or negative do you feel about your job security?
Response Average Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Positive 37% 32% 45% 46%  28% 21%
Neutral 44% 32% 37% 33% 59% 70%
Negative 19% 36% 19% 21% 13% 9%
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How positive or negative do you feel about the state of the property market?
Response Average Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Positive 36% 22% 35% 37% 39% 44%
Neutral 43% 43% 42% 40% 46% 41%
Negative 22% 35% 23% 23% 15% 14%
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How confident are you in your ability to manage your money?
Response Average Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Confident
68% 49% 60% 65% 82% 88%
Neutral 23% 33% 31% 23% 13% 8%
Not confident 10% 18% 10% 12% 5% 4%
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How confident are you in your understanding of money matters?
Response Average Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Confident 64% 46% 58% 61% 76% 81%
Neutral 26% 35% 30% 26% 19% 13%
Not confident 11% 19% 12% 13% 6% 5%
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In the past three months, have you...

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Response Average Gen Z Millennial Gen X Baby Boomer Pre-Boomer
Purchased something on impulse you later regretted because you couldn’t afford it? 8% 18% 12% 8% 2% 4%
Talked to your family about your finances? 23%
38% 28% 22% 13% 17%
Talked to your friends about your finances? 16%
28% 24% 14% 7% 7%
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About the survey
Research was conducted with n=1,646 Australians from the 24th of November to the 3rd of December 2020 via a 20-minute online survey, with sample provided by Qualtrics. The data was post-weighted based on 2019 ABS Census data (age gender and location) to be representative of the population.

About Bankwest
Bankwest’s vision is to deliver brilliant customer experiences every day and our purpose is to improve the financial wellbeing of our customers and communities. Bankwest provides personal and business banking solutions for more than 1.1 million customers across Australia. Our customers enjoy access to an extensive network of branches and business centres, direct and third-party distribution channels, agencies and electronic banking facilities, as well as 24-hour banking on the telephone, internet and the Bankwest App. Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit license 234945.

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