Gen Z Australians are the age group most willing to cut back on spending to afford a home, according to Cotality data reported by AAP.
More than 75 per cent of Australians said they were willing to curb their outgoings to pursue property, a higher share than among Canadian, US and UK respondents, where the figures were below 70 per cent.
The financial trade-offs are being seen in discretionary spending, with young adults cutting back on activities such as eating out, car ownership and moving out of the family home into shared accommodation.
Data cited in the reporting also shows the number of 26-to-29-year-olds living with their parents increased from 19.6 per cent in 2012 to 21.9 per cent in 2024.
The pressure is not limited to first-home buyers. Millennials are also cutting back on smaller luxuries while trying to buy homes large enough for their families.
Capital Buyers Agency owner Claire Corby said some prospective buyers were selling a second car or delaying holidays while their children were young.
“For many, it’s around delaying things like going away, or reducing things like dinners out,” Corby said.
Mortgage rates are another major factor in the decision to enter the housing market. The Cotality data found most Australians would not be persuaded to participate in the market until the average mortgage interest rate reached 4.9 per cent.
The average owner-occupier mortgage rate was 6.3 per cent in August 2026, according to the data cited in the report.
Only about a quarter of Australians said they could feel financially comfortable while paying upfront housing costs, while 26 per cent said they could cover monthly repayments without changing their lifestyle.
Australia By Aussie previously reported on longer-term pressures around housing affordability and how they could affect younger generations. That earlier coverage examined housing affordability as part of wider intergenerational pressures.
The latest figures highlight how prospective buyers are adjusting everyday spending and housing choices while borrowing costs remain elevated.
