Research from Bankwest’s Home Truths series has revealed young Western Australians refuse to relinquish the dream of owning their own home, despite feeling significant pressure from economic headwinds.
Bankwest’s Home Truths survey collected responses from more than 1700 Australians, with a focus on WA, to better understand the needs, preferences, and attitudes of those who own, or aspire to own, their own home.
The data showed that, despite the current economic pressures, young Western Australians continued to aspire to own their own home, with 73 per cent of Gen Z and 57 per cent of Gen Y still considering the goal as important.
However, it was also clear the current and next generation of homebuyers were feeling the impact of the current environment of rising interest rates, increasing inflation, cost-of-living pressures, and tightening property markets.
The number of WA Gen Z (14 to 25-years-old) and Gen Y (26 to 41-years-old) respondents who felt home ownership was achievable was adrift of those who felt it was important, sitting at 50 and 46 per cent, respectively.
The pressures were most telling on Millennials – the current generation of homebuyers – who in the previous Home Truths survey, conducted in October 2021, rated achievability at 71 per cent – a fall of 25 per centage points.
Young West Aussies also appeared concerned with housing supply and construction delays, and affordability, with a third (36%) of Gen Z and almost half (46%) of Gen Y having made significant changes due to interest rate rises.
Those changes included one-in-five Zoomers (19%) and one-in-10 Millennials (10%) delaying or cancelling plans to buy a home, with 16 per cent and 23 per cent, respectively, cancelling or delaying major household spending.
The impact of construction delays was highlighted by only a quarter of in-market Western Australian homebuyers saying they are likely to build – a 14-point drop in the 10 months from the October 2021 Home Truths survey.
Bankwest General Manager Homebuying Peter Bouhlas said: “The current combination of housing and rental pressures, ongoing supply chain challenges, and inflation is posing some challenges for most Australians.
“Western Australia’s current and next generation of homebuyers are on the frontline of these impacts, with many having never experienced a rising rate market in their homeownership journey.
“It is promising to see that, despite these pressures and economic headwinds, young Western Australians have not given up on the dream of owning their own home, and it’s important they are supported in navigating that goal.
“We believe challenging economic conditions may be here to stay for a while, so we encourage all customers to ensure they are in the best possible financial position and contact us immediately if they require support."