Home ownership slipping further out of reach for young Australians: Lextech research
Home ownership is slipping further out of reach for young Australians, according to new research from loan technology provider Lextech, which surveyed banking and finance executives at one of Australia’s largest banking conferences, the Customer Owned Banking Association’s (COBA) annual conference in Brisbane.
A survey of more than 100 banking and finance executives attending the event found 85% believe people under 35 face increasing barriers to buying a home. Only 11% disagreed, reflecting widespread concern across the sector.
Peter Maloney, CEO of Lextech, said the results highlight both the urgency of the housing affordability challenge and the strength of the Australian banking system in supporting solutions.
“The notion that Australia faces a systemic housing affordability challenge is widely shared by banking and finance professionals. With less than 5% of existing homes changing hands each year, it’s clear that younger buyers are confronting significant hurdles. Federal and state Government initiatives providing financial support to first-home buyers are critical, as well as improved planning laws for faster land releases, because there is a massive wave of 20–35-year-olds that will either realise the great Australian dream of home ownership or be persistently trapped in the rental market,” Maloney said.
“Without continued targeted action across the nation, we risk leaving an entire generation behind in the property market.”
The survey also found strong expectations that an interest rate cut by the Reserve Bank of Australia (RBA) would stimulate new lending. 79% of respondents said a cut would drive loan activity, compared to just 16% who believe it would not.
A widening generational divide trend
Census data reinforce the survey findings, showing sharp declines in home ownership among younger Australians.
- 30–34-year-olds: down from 64% in 1971 to 50% in 2021
- 25–29-year-olds: down from 50% in 1971 to 36% in 2021
- 50–54-year-olds: down from 80% in 1996 to 72% in 2021
Overall ownership has slipped from 70% in 2006 to 67% in 2021, with older Australians helping to stabilise the rate due to higher levels of outright ownership.
“The Australian banking system remains one of the most successful in the world, supporting the economy and Australians with a diverse range of lending options from residential and business loans to building and construction, SMSFs, and newer product innovation such as reverse mortgages,” Maloney said.
Lextech, which powers smarter, faster, and more secure mortgage processing and settlements for over one-third of Australian lenders, captured these insights during one of the industry’s most influential gatherings, which drew more than 1,000 delegates from mutual banks, credit unions, and building societies.
