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According to an ME Bank survey of 1,000 Australian adults, 26 per cent of respondents aged 18-29 believe they will never be able to buy their own home.
That compares to a result of 18 per cent for adults of all ages.
ME Bank general manager asset products Luke Easton said it’s a sign of how challenging housing affordability has become for many Australians.
“A large group of young people are delaying or ruling out homeownership altogether,” he said.
However, the survey also found that 24 per cent of those younger Australians are finding ways to increase their savings, compared to the overall result of 12 per cent.
According to the survey, 20 per cent of younger respondents are finding ways to increase their income, compared to 11 per cent overall.
The results also showed that 14 per cent of younger Australians would buy jointly with friends or family, compared to 6 per cent overall.
Another finding was that 12 per cent of younger Australians would be prepared to change their expectations on size, quality or location, compared to 6 per cent overall.
Mr Easton said the financial challenges faced by first home buyers, including some of the highest property prices in the world, were forcing young buyers to be creative in their pursuits for the ‘great Australian dream.’
The survey also found that 51 per cent of respondents with properties, or who planned to buy a property, expect prices to rise in the next 12-24 months.
A further 40 per cent are expecting prices to remain steady, and 9 per cent are expecting property prices to fall.
Mr Easton said first home buyers should try to ignore speculation about what will happen with property prices.
“Trying to pick the market is impossible and you’re better off focusing on what you can control – saving for a deposit," he said.
“Similarly, investors would be wise to build their investment strategy based on long-term capital growth and ignore short-term price fluctuations.”
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