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Bankwest’s latest Home Truths research has indicated that Generation Z buyers are set to grow in prominence, particularly in Western Australia.
The research, based on a survey of 1,700 Australians, primarily focused in Western Australia, concluded that the saving and spending habits of Generation Z, or people aged 14 to 25 years old, have changed over the past two years.
Shifting purchasing sentiment is highlighted in the fact that in the 2020 edition of the Home Truths survey, just 5 per cent of Western Australia’s Generation Z buyers expressed their interest in purchasing a home within the next 12 months. Now, that figure sits at 14 per cent, higher than the 9 per cent of NSW respondents and 8 per cent of Victorian respondents who shared these sentiments.
Additionally, the research also found that the priorities of Australians in this age bracket were shifting. In 2020, about 43 per cent of respondents declared their intention to purchase a car within 12 months. In 2022, that number has declined to 23 per cent.
However, Bankwest general manager of home buying Peter Bouhlas noted that this sentiment could “in part be attributed to soaring vehicle costs and supply challenges”, though he did elaborate that it “doesn’t explain the jump in those looking to buy a house”.
Once a far-fetched dream, home ownership has grown to a concrete reality in Western Australia’s Generation Z buyers, with the data indicating that the number of respondents uncertain about housing preference slashing by three-quarters since 2020, culminating in just 4 per cent of those surveyed in 2022 expressing uncertainty around housing choice.
Standalone houses remained the most popular choice, with 45 per cent of respondents listing it as a priority; however, duplexes/townhouses have grown in popularity, with 16 per cent nominating it as a preference, up from 7 per cent in 2020.
Such promises about home ownership are not empty. The Home Truths research has found that a growing portion of Western Australia’s Generation Z are planning to put their money where their mouth is, with a range of figures highlighting their increased engagement in financial matters in the last two years.
This is exemplified by the fact that the number of respondents in the age bracket utilising investment apps has nearly tripled from 5 per cent in 2020 to 13 per cent presently, while 12 per cent indicated they had discussed finances on social media, up from 6 per cent in the first year of the pandemic.
Mr Bouhlas surmised that “the Australian dream of owning a home is alive and well with the next generation of home buyers”.
“This new data suggests the next generation is now preparing to enter the housing market, with several of these responses indicating potential Gen Z buyers are thinking more specifically about how they will achieve their goal,” he said.
He touched on the fact that the decrease in the number of young West Australians unsure about what style of house they’d purchase is a positive indicator of shifting sentiment.
“That is supported by the increase from 2020 in the number of young people preferring smaller dwellings, such as duplexes or townhouses, with the lower price-point an understandable consideration in the current environment,” he said.
Mr Bouhlas concluded that all these factors “combined with increased savings behaviours and financial engagement, suggests we could be seeing the start of the next wave of home buyers entering the market, as the state’s Millennials make way for Zoomers”.
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