Record Numbers of Australians Sacrificing Lifestyle to Afford Homeownership

According to a Cotality survey released on Friday, more than three-quarters of Australians are prepared to trim non-essential spending to afford a home, a willingness that exceeds that of Canadians, Americans and Britons. The trend is strongest among Gen Z, while the proportion of 26- to 29-year-olds living with their parents increased from 19.6% in 2012 to 21.9% in 2024, with young men almost 10% more likely to stay at home than women.

Millennials are also forgoing luxuries, selling second cars and postponing holidays, as noted by Capital Buyers Agency owner Claire Corby. Despite a current average mortgage rate of 6.3%, most buyers remain conservative, with only 25% feeling comfortable covering upfront costs and 26% able to meet monthly repayments without lifestyle changes. Experts advise prospective owners to assess a property's utility over a set period and avoid over-extending mortgage limits amid rate volatility.