Live proud podcast Ep.1: Is the Australian housing market ready for Gen Z?

• Changing definition of homeownership: For Gen Z, owning a home is less about the “white picket fence” dream and more about security, flexibility, and sustainability.
• Cost of living pressures: Rising rents, utilities, and everyday expenses make saving for a deposit extremely challenging, raising the question: can Gen Z afford homes in today’s market?
• Lifestyle compromises: Many stay longer with parents, cut back on travel, or delay independence to save.
• Creative solutions:
  • Co‑ownership with family or friends.
  • Investing in stocks first to build a deposit.
  • Considering medium‑density housing, apartments, or communal living.
• Government schemes: Deposit guarantees exist but may not always target those most in need.
• Sustainability matters: Gen Z prioritises eco‑friendly homes with solar panels, insulation, and durable materials.
• Long‑term mindset: Many expect to enter the market later (mid‑30s), focusing on manageable loans and realistic first homes. These choices reflect broader Gen Z property investment trends, as young buyers balance affordability with long‑term value.

Brent: Hi, I'm Brent Hill. You're listening to the Live proud podcast. Today, we're putting a generation under the microscope, Gen Z. They're digital natives, globally minded and coming of age in one of the toughest property markets Australia has ever seen. But despite the headlines, many are still finding ways to make home ownership happen, even if it looks a little different from the traditional path. Our guest is Lucy Callahan, a 25-year-old renter who's balancing career, travel dreams and long-term goals of owning her own home. She'll share what she and her friends are really thinking about property, how they're getting creative about deposits and partnerships, and why sustainability and flexibility matters as much as the square metre. So Lucy, a really difficult time. If you could explain to me about home ownership and what it means to you today, particularly for a Gen Z?

Lucy: I think it's big question, but I think today it means a lot different than what it was-

Brent: Let's just say with your parents, for instance...

Lucy: Yes, so from my parents to me, I feel like it's a completely different situation. I think from my parents, what it sounds like is they got, you know, their first job, first two jobs, started saving, kind of in the background, were able to rent with their friends, go on a couple of overseas trips, and then look at putting down a deposit for a house. For us, I think that feels like a complete dream.

Brent: Is it overwhelming when you first consider it? You look at these beautiful homes and apartments that are available, but also you have your own lifestyle as well, and you've got to have shelter over your head as you save for a deposit, you need to put food on the table, plus you want to enjoy life and actually have a lifestyle. What are the compromises you and the Gen Z cohort are looking at today?

Lucy: I think, you know, it's across the board, people are staying at home longer than they want to. I have friends who are still living at home at 25/26 - they don't really want to be but they're doing it because they're putting, you know, being able to join the property market, they're putting that at one of their highest priorities.

Brent: So the compromise is, what you're saying, is you've got to live with your parents a little longer to assist you saving for a deposit. That's sort of part of getting the step up the ladder, is getting the deposit. And the compromise is, what I'm hearing from a lot of the Gen Zs, they're staying at home longer. There's probably less travel happening. But also they're looking at their careers with property prices increasing, averaging, say, 7% per year, but their wage growth is only at 2% - are you saying the same thing?

Lucy: Yeah, absolutely. And it's not just that the property prices are increasing, it's that our rent prices are going up, it's that our supermarket costs are going up. It's that, you know, all of our electricity and gas bills are going up. So the ability to save for someone who is renting is pretty much impossible, and the money that you do save, it's hard to say, okay, I'm just never going to go on holiday for the next few years, because I'm going to put this towards a deposit for a house, you just get burnt out. And I think that's something that we're seeing across the board, is Gen Z are just getting burnt out from everything.

Brent: Well, I hear about the cost of living crisis every day, at home and talking to broader subsets of friends and family. And I think for Gen Z, it's a real impact that you're trying to save for a deposit. You know, at the moment, compared to 20 years ago, it was six times your average salary. Now it's eight times. It's at the highest it's ever been. So I really do worry about the Gen Zs, and almost apologetic that, you know, I actually had it quite good, and so did my parents. But I look at the Gen Zs and they seem to get a hard rap. They're going with their smashed avocado, and they're going on these grand overseas trips, and they're drinking gin and tonics on a Friday, spending their money - that just doesn't seem to be the case. What I'm hearing is there's cost of living pressures, incomes aren't going up, we're compromising on travel and lifestyle, and saving for a deposit is really hard. Are you going through that process at the moment of saving for a deposit?

Lucy: Yeah, look, it's in the background, but I'm definitely putting money away each week. And I guess for me, home ownership is about security and investment. And I think that I'm starting to realise that I don't need a house necessarily to invest, that I can invest in the stock market cleverly. And so I'm starting to do that in the background. Maybe that money will then turn into, okay, actually, I do want to put it as a deposit for a house.

Brent: Yeah, I wanted to dig a bit deeper there, because home ownership is different for different people. In some cases, if they're renting and then they've been kicked out because their landlords are selling or they're wanting to move in. So it's the security of having a home for some people. Others, it's that investment story saying, you know, I have a property and property prices go up over time, and that's part of my wealth creation vehicle for the long run. Others, it is that internal passion and burn that they just want that home ownership. They want that white picket fence that potentially their family or parents might have had. What's your burning passion that drives you about home ownership?

Lucy: For me, I think it's security. I've watched a lot of my friends be kicked out of their rental place in a week. And their rent price would be doubled. There was a few years ago where it was just across the board - every single person's rent was going up, you know, $60 a week, which to some might not seem like a lot, but we're all quite young, that's a lot of money for us - especially when you look at it over a whole calendar year. So it's just like, I don't know if I'm going to be in the same house that I'm currently in in a year's time, because the rent could just go through the roof tomorrow, and I have no idea.

Brent: Yeah, like 2022/23 that was the highest rental growth we've had for two decades. It was double digit rental growth. So that would seriously impact your, one, your cost of living, but your ability too to put a deposit together. We're just talking about the value of ownership. What compromises do you think you will have compared to previous generations in what you define your home as? As I was saying, it used to be that dream of a white picket fence but that has changed somewhat. I'd be interested to hear your thoughts on this.

Lucy: Yeah, definitely. I think we grow up with this rhetoric that the only property that's good to buy is a freestanding home. I guess that's what my parents always told me. That's what we're kind of always told growing up. And then now everything's changed, and it's like, just get in the property market at all.

Brent: Land appreciates and buildings depreciate, I was told that myself. Buy land.

Lucy: Yeah, buy land. And so now it's like, okay, that's probably really not an option for any of us, unless you are kind of backed by your parents or inheritance or something like that. And so I think personally, I've been like, okay, I've made peace with the fact that probably a house isn't coming my way. But where are those, like, medium density houses, like, you know, a ground floor apartment that has a small courtyard, or a block of apartments that has a shared backyard, which I'm renting currently in a place that has, it's a duplex, but it's one on top of the other. We have a shared backyard and I just think, why is there not more options like this? And if there were that would be amazing, like, I think communal living is going to be the way of the future for Gen Z, but it would be great to see those options come up in the property market.

Brent: Yeah, I definitely think the diversity of product, particularly around affordable product - whether it's apartments or villa, townhouse style of accommodations - is definitely a market that developers and government need to consider. And of course, you know the government are looking at opportunities and ways for Gen Zs and first home buyers in general to get into the market. And you might have heard about the recent 5% government guarantee* that's come through - what are your thoughts on that? Do you understand how it works?

*Editor’s note: A 5% government guarantee is a federal scheme where the government acts as a guarantor for part of your home loan, allowing you to buy a property with as little as a 5% deposit without paying lenders mortgage insurance (LMI).

Lucy: Yeah, broadly, I understand how it works. Maybe not the intricacies so much, but my understanding is that the income threshold has been completely wiped.

Brent: Yeah, it used to be $120,000 as a single and $200,000 as a couple, now that's not means tested anymore. So you could be on $1,000,000 and still be eligible for the first home buyer-

Lucy: Which just feels kind of wrong. I guess my instinct, I'm just kind of like, if you're trying to help people enter the market, why are you helping people who can already afford to enter it on their own?

Brent: Yeah. I think government policies are probably for another day, and well beyond my pay grade. But what I do see is that people are becoming quite creative about purchasing a property, they might team up with a family member, they might be putting a deposit together with a very trusting friend, and they're going into co-ownership models. Are you seeing that yourself, with any of your friends or people in your generation?

Lucy: Definitely. I've had conversations with my partner about this because he's very keen to start, you know, putting together a deposit and buying a house. But I'm a few years younger than him and that doesn't really feel like the number one priority for me at the moment, at least for a bit. And so he's like, okay, maybe I could think about teaming up with some of my friends and, like, starting to actually think about what that actually looks like in practice, not just saying it. And I think the conversations we've had is, that's all great, but what about when they want to sell, but you don't want to sell this property that you own together? And like, if entering the property market, I'm there to get security, then all of a sudden it could be kind of like, okay, they want to sell, you know, next year, and I'll be like, well, there goes my security.

Brent: Yeah. And I think the independence as well, Lucy, you know, you'll have your own view on where you and your partner are going, what sort of property that you're looking for, and again, you're just sort of tied to that person if you're going to into co-ownership. But I understand it's the first step. And I often say when I get asked, you know, what should I be looking for when buying my first home? I don't have the answer but, again, I can answer that with a question, and that's about, what do you value? What are your priorities? What are you looking for? Do you want to be close to your family? Do you need to be close to work? Is it more of a lifestyle ownership, or is it an investment property? And some people are looking at investing and also renting at the same time. So has that entered your equation as well? To get into the property market, I'll rent my first property out, and at the same token, I'll rent in my desired area.

Lucy: No, it definitely has. I think what I hear from, you know, people I've worked with that own a place, is they say it's all well and good to own a property and then rent it out to someone else but they're having so many issues with that. It's just this added complication on top. When they're like, I could just be in there. They're paying their mortgage, they're not making any money out of that place. So they're kind of like, well, why don't I just live there and pay my mortgage? I mean, obviously I'm not a professional in this so I'm not 100% sure, but I don't really hear that many people talking about that, because that's not the biggest issue for us. It's not like, oh, am I going to make money out of this investment? It's like, will I have a place to live?

Brent: The Castle - one of my favourite shows, and "it's not a house, it's a home". And I think that's what you're telling me, that home ownership is about valuing, that your core possessions are there, you have the security that nobody's going to take that off you, from a landlord perspective, and you make the home what it is, and it's the people within it, the people that you share a meal with, but it gives you that security. So I don't think anything has changed from my parents and myself. It's a place which you have your nest and you call your home, and still with pride, I beam about coming home to my own home, and I know that you will one day as well. And I'm glad that that is still a key driver for Gen Z.

Brent: The Trust Fund babies - we hear about the parents putting towards a pretty hefty deposit to the younger generation to give them a bit of a head start. Thoughts on that, and are you seeing that across your generation?

Lucy: Yeah, definitely. I think there's quite an obvious gap with you know, quite a few of my friends, myself included, I come from quite a well-off family, there is kind of that understanding that, like, oh, if I do decide to put down a deposit, maybe my parents will help me. Some of them absolutely know that their parents are helping them, myself more, like, I doubt it, and it's never been mentioned, but I'm if in some way I would have their support, maybe that's just through their love. But yeah, there's definitely quite a few people, like the only ones that I know who are actually considering putting down a deposit for a place in the next few years, are all backed by their parents in some degree, or have been given an inheritance by a grandparent or something like that.

Brent: Yeah, they're saying the one of the biggest banks in the world now is the 'Bank of mum and dad' and look, I don't think there's anything wrong with that. As a parent myself, you want your children to understand the value, you want to assist them, and you're doing it from the right part of your heart. You still want to look after your kids and I think that's a big part of that. No offence to the Trust Fund babies, but I think it's a real fortune to have that ability if a parent or family member wants to assist them getting into home ownership, because it is probably one of the most valued possessions that you do have, is that first home.

Brent: We touched on it earlier, just about what a home looks like for you. As I said, it's not the quarter acre block and a white picket fence anymore. So what does it look like for you now, Lucy?

Lucy: I would love just a small two bed place with a green space either connected or maybe out the front or nearby. And that's kind of the minimum for me, I guess. In terms of buying something, I'd just love a home where I can see myself there long term, maybe able to have a kid there. And so I think people like to think that Gen Z is just there going, I'm gonna do this, I'm gonna spend money on this... We actually are having these conversations about, where do I want to live long term, and what do I want my home to look like? And that doesn't look like what it has in the last even 10 years. Yeah, it's completely different.

Brent: I look at home ownership like raising a child - you've got to crawl before you can walk, and walk before you can run. And I look at the same journey with property - your first step into property may not be the trophy home or your dream home, but it is that first step that gets you on the journey to further progression of bigger and grander things, whether your family grows or you have different needs within that household. So, really interesting that you're saying it can be quite modest. It doesn't need to be the glitzy, big, glamour home. But it is something which you might see for a five to 10 year period that you, as a couple, raise a family and then look at opportunities after that. But at least you're on that first step of the ladder, and it gives you that ability to get into further progression through there.

Brent: Just on another topic about Gen Zs and sustainability - are they elements that you look at when looking at home ownership and property yourself? Just interested to get your thoughts on this, whether it's sustainable apartments or sustainable living.

Lucy: Yeah, I think across the board, Gen Z have been the most switched on generation, environmentally. And that's been, you know, a lot of us grew up in the drought in Australia. So from the time we can first remember, we were timing our showers. So I think it's just kind of built into us, and that extends to property as we want to make sure we're getting property that's, you know, solar panels would be amazing, properly insulated - which isn't just helping the environment, it's also helping our bills. And also, something that I feel is not touched on heaps is the need for well-built property. I look at the house I'm in currently - it's 100 years old, and it's going really well. And I'm thinking, can properties these days guarantee that they're going to be here in 100 years, or are they going to fall apart? And the amount of materials that you need to build a place is insane, that environmental impact is huge. To have to tear something down and rebuild it when it could have just been well made in the first place, and then last 100 years, like the houses that I've lived in.

Brent: I think what you're telling me is, you know, Gen Zs are looking for efficient homes that are well insulated, it affects your cost of living with heating and cooling, etc, also acoustics and thermal qualities, but also, you don't want to be spending more money on refurbishing and renovating a home after 10, 15, 20 years - that quality of building is really important. So again, I think that's generational, I think we're all quite conscious of the environmental position at the moment and looking for sustainable homes and ensuring that there is good build quality there. So, I think that goes across multiple generations.

Brent: Just take us through, you know, the media coverage at the moment about home ownership, and particularly around the Gen Zs - you know, smashed avocado, European trips, Friday night drinks, going out and ordering Uber Eats every time you have a bite to eat. Is that actually a fact, or is that a bit blown out by the media?

Lucy: It's definitely blown out. I think the media loves to say that. And then, on the other hand, the media is also saying Gen Z is not partying enough. They're not connected to each other enough, they're all depressed, and I'm like, okay, so what is it? We're spending too much money. I think the reality is that, you go out on a Friday night and a pint at some places is nearly $20. I'm only going out and buying two drinks, and I'm nearly spending $50. Like, it's not that I'm spending lavishly, it's that everything has gone up across the board, that just grabbing a beer with your mate is becoming an expensive thing to do.

Brent: I think you deserve a beer after a hard day. I don't think there's anything wrong with that.

Lucy: I will say there's definitely a lot of like, you know, Euro summer became massive on TikTok, and there's this big push to go and do a big, expensive trip, and I hear of people spending $20,000 in two months, which I personally think is insane. But if that's their priority, and that's what they want to do, by all means, go for it. I guess then they just have to look at am I going to be able to put down a deposit? Is that important to me? If it's not, by all means, go on your trip.

Brent: I think what we're saying is probably that the myth is blown there, that you are very conscious about saving and, you know, probably having social media accounts amplifies what people were doing 20 years ago. You know, we were still going on overseas trips, but we didn't have Instagram and the like. So it's probably been blown up a little bit more by the social media impact there, and it's more overtly out there.

Lucy: Yeah, I think my mum said one time - I thought it was great - she said, when I was younger, I didn't have to choose between a month-long trip to Europe and putting a deposit down. I could do both. And I think that always kind of rang home with me, and I thought, that is disappointing, but I will say, you know, hope's not dead. There are people entering the market and who are going on their month-long trip and then entering the property market, but it is just a more difficult journey than previous generations. But I think we'll adapt. I think I've sounded very negative so far, but I actually feel kind of positive about it, that it somehow will work out.

Brent: Not at all. I'm very optimistic about where you're going with things.

Brent: Savings - is it something that you and your generation consciously look at, about saving for a deposit? Is it a weekly position that you might put some money away, or a percentage of your wage away? Or is it not part of the psyche at the moment?

Lucy: No, it definitely is. I mean, personally, I'm quite a saver, like I've always been, just ever since I was little - if I could save some money, I would. So I'm maybe not the best person to ask, but I think, across the board, definitely, everyone's talking about saving. And I think people are just putting money aside. Whether that's for a deposit or not, I'm not 100% sure, but people are very much trying to save. It's just there's not much left over once you include increased rent, increased supermarket prices, everything.

Brent: Like I look at the statistics today, the median price of property in Melbourne is around $1,000,000. You go to Sydney and it's well up to $1.4/1.5million, which is the highest it's ever been. Same with Queensland, same with Adelaide, same with WA and the ACT. So there's been no worse time in the market from an affordability position as far as house pricing is concerned. You know, we had inflation at 7/8% a few years ago. Now it's moderated. So it was very difficult to secure extra funds for a deposit. In the last 2-3 years, we've had almost double digit growth in rents. I think it equates for around 35-40% takeout, for the average person in Australia, of their wage goes into rent. So it's a significant amount of your money, and the highest proportion of your money goes into rent. So I do feel for generation Zs, but any generation that are looking to get onto the property ladder as a first home buyer, I think it is quite difficult. But knowing that there is opportunity out there from government that is there to assist, I think is encouraging. I think leaning on family - I think it's really important that we have the discussion with our family members about, my goal is to get onto the property ladder and it'd be great to have your support, if they're willing to do it. You know, speak with other peers that might be similarly aligned with getting into the market. So I think the choices are starting to, and we're becoming quite innovative the way we're thinking about home ownership. And it's not just how our parents might have put towards a deposit and went and put a deposit and bought the home. So I think there are some encouraging signs there.

Brent: If you could talk to me about getting a loan - is it something that, again, yourself or your peers are looking to speak with a broker about getting a loan and seeing how much you could borrow in that first instance? Is that something which is coming up?

Lucy: People definitely aren't looking at approaching a mortgage broker. I don't think people have the spare cash to do that*, I mean, we're also young, so no one's earning that much, and no one's kind of near really putting a deposit down, except for that group of people that I talked about before. They'll usually have, you know, a family member's mortgage broker that they'll go to, but in terms of people who are doing it more independently, you know, we're looking at calculators online. You know, there'll be some random real estate site that's got, this is how much you could probably borrow. But beyond that, no one's really talking about it.

*Editor’s note: Mortgage brokers are generally free for borrowers, as they are paid by the lenders. For more information and additional guidance for first‑home buyers, please refer to our First Home Buyer Hub.

Brent: It's so interesting you say that you get online to do your research now, about finance and pre-approvals, is that the same thing about when looking for a property, you get on realestate.com or Domain and start doing your search? Or do you go to a local real estate agent? Where do you get your trusted advice from?

Lucy: Definitely the internet. I think, you know, we're a generation kind of born into the internet and if you know where to look, and I think we are quite good at being like, okay, that website's fake, this one's real. If someone can pick it, it's Gen Z. So yeah, I very much trust the internet because I know that I'm looking at the correct sites. So definitely, that's where people are going, realestate.com and all that.

Brent: It's incredible how that has changed over my time - 28 years I've been in the industry, and we once just had brochures and an artist impression was a drawing of a house. So now it's becoming very much, you jump on your laptop or a tablet or your iPhone and start doing your research. What selection criteria would you use when looking for your desired first home?

Lucy: I would just have two bed, and I'd probably be looking in ideally the suburbs that I would like but I imagine it's going to be much further out.

Brent: So accommodation, suburb and a price band of some nature?

Lucy: By all means, I'll sort it by lowest first. Yeah, I think the thing that we're gonna have to be is super flexible about what properties we're looking at. So I almost have no criteria because I'm just like, I'll just see what I can get when I, you know, I'm gonna start saving and I have, but when I get to that point is when I'm going to say, okay, what's realistic? And go from there.

Brent: Well, look, I think you are, I think you're willing to be nimble and compromise. You're not going into the market with, hey, I'm going to purchase this trophy home. There's going to be compromise on location, it might not be in the area that I was brought up in, and my cohort is, it might be a little further out. It might not be the amount of accommodation we want at the start, but is a stepping stone in and more importantly, it's what I can afford. And I think that affordability comes in two parts: one is what the bank is going to lend you, but more importantly is how much can you afford per week to put into the property? So probably just a note to those listening is to really look at that. And some advice would be, you know, how much can you actually afford to put in per week or per month to afford the property or to put in as a mortgage, not what the bank is actually going to give you. And I think that could be a key component, particularly with the 5% deposit guarantee, because naturally, prior to this, people were putting in 10-20%. Nowadays, they're actually going to have to borrow 95% so it means they'll be paying 95% of the mortgage, which is more money per week, per month. So probably a trap to you and others looking into the market or getting on that ladder is make sure that you can afford it, make sure you can still have a lifestyle, still have the beer at the end of the week, and still have an opportunity for travel and what you enjoy. But there will be compromise, no doubt. But is it worth it? Absolutely. Probably lastly, and as we wrap things up, I'm just curious to understand your timeframe as to when, you're 25 now Lucy, so what sort of timeframe would you sort of expect, or wanting to join the property ownership list and take that first step?

Lucy: I think, if I'm being really realistic about it, mid 30s is when I would love to kind of join the property market, and I think that gives me a good amount of time to start saving a deposit. But also to-

Brent: You talked about having one child, you might have three by then.

Lucy: Well, I was like, oh, I'll just get three bunk beds and put them all in one room. We'll hope for the best. I think I'm very open to the fact that I'm going to be quite a long term renter, and that I, like you say, even if you've got a house, can you afford to keep paying the mortgage every single week depending on, you know, what loan you've got? I'm very conscious of that. And so I think I'd rather spend a longer amount of time putting a deposit together and having a smaller loan that I know I can pay off and then enter, which means, yeah, I am looking at, you know, 10/15, years, and I've made peace with that absolutely. I think there's a lot of benefits to renting as well, and I'm kind of happy to keep doing that.

Brent: Yeah, it's really interesting. You know, I still reflect on Darryl Kerrigan's quote about, "it's not a house, it's a home, and my home is my castle". I wish one day you'll find your castle and have your home with a buzzing family, happy and healthy. It's been a really, really interesting chat. It's difficult, no doubt. I think you're realistic, you're looking at compromises, you're doing the right research. And there's a lot of people out there that want to help and want to give Gen Z or any first home buyers advice. Please reach out to us and others about, what are the steps that you've learned? You know, what are the pitfalls? What has worked and what hasn't? There's a lot of people out there that will give you advice, and I'd say, lean on that, listen to them. But most importantly, good luck with that first step. I'm sure a lot of people will be there to watch you take your first step onto the ladder, and I know that you'll have that burning feeling of joy and admiration when you actually do step onto that ladder. But in the meantime, keep enjoying life. Life's here to be lived. Keep having that desire to purchase a property, and as always, reach out to anyone if you need any advice. But Lucy, thanks so much for joining us today. It's been an absolute joy, and I wish yourself, first home buyers and all the Gen Zs all the best with their first home ownership moving forward. So thanks very much.

Lucy: Thanks, Brent.

Brent: Thanks for listening to the Live proud podcast brought to you by Frasers Property Australia, where we share real stories and insights shaping the Australian property market today. Subscribe to hear more conversations that remind us why finding a home and community you're proud of is one of life's biggest milestones.