Key takeaways
Gen Z is the first truly digital-native generation, and growing up online has shaped how they think, communicate and engage with the world.
Despite the stereotype, Gen Z workers are not job-hoppers. Housing affordability and economic uncertainty are making them more cautious and geographically tied.
Mental health challenges are significantly higher among Gen Z, driven by social media, global uncertainty and the pressures of modern life.
Gen Z will reshape Australia’s housing market by renting longer, delaying home ownership and increasing demand for higher-quality rental accommodation.
This generation is more diverse, globally minded and politically disengaged from traditional parties, which will influence future consumer trends, workplaces and public policy.
They’ve never known life without smartphones.
They grew up through lockdowns, climate anxiety, social media algorithms and a housing crisis that has made the traditional Australian dream feel increasingly out of reach.
And while many older Australians still dismiss Gen Z as entitled, distracted or unrealistic, they’re missing something important.
This generation is already reshaping the way Australians work, spend, communicate, invest and live.
In fact, many of the trends that will influence our economy and property markets over the next two decades are already being driven by Gen Z.
For business owners, employers, investors and property professionals, understanding this generation isn’t some sociological curiosity anymore.
It’s become a strategic necessity.
As demographer Simon Kuestenmacher explains:
“For the next decade and a half almost all of the new hires will be Gen Z. So you kind of have to figure out right now what those people actually are.”
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Gen Z is Australia’s first truly digital generation
Every generation is shaped by the world it grows up in.
Baby Boomers grew up during post-war prosperity.
Gen X learned independence during economic uncertainty.
Millennials witnessed the rise of the internet.
But Gen Z is different because technology wasn’t introduced into their lives - it was always there.
According to Simon, Gen Z are “the first well and truly digitally mobile native generation.”
From childhood, they’ve had constant access to smartphones, social media and the internet.
They grew up with unlimited information at their fingertips, but also with endless distractions competing for their attention.
Importantly, this hasn’t just changed how they communicate. It has changed how they see the world.
Older generations generally think locally first and globally second. Gen Z often does the reverse.
They consume global news continuously through social platforms, making international issues feel deeply personal. Things like climate change, wars, social justice movements and geopolitical conflicts aren’t distant events to them - they are part of their daily information feed.
Simon explains that Gen Z tends to “think global warming first, local bike path second.”
Note: That worldview influences how Gen Z vote, where they spend money, the brands they support and the employers they choose to work for.
The mental health crisis shaping Gen Z
Unfortunately, the same digital environment that connected Gen Z to the world has also exposed them to unprecedented psychological pressures.
This generation has grown up consuming a relentless stream of negative information.
Things like economic instability, climate fears, wars, social division and financial uncertainty have become part of the background noise of daily life.
And social media algorithms have intensified the problem.
Platforms like TikTok and Instagram are designed to maximise engagement, not wellbeing. Their algorithms reward outrage, anxiety and emotional intensity because those emotions keep users scrolling longer.
Simon says the impact has been severe, particularly for young women, explaining that “the negative mental health impact… is through the roof.”
The numbers are confronting.
At the 2021 Census, around one in five Australian women aged 20 reported having a medically diagnosed chronic mental health condition.
in other words, this is no longer a fringe issue, it’s a generational challenge.
And while social media is often blamed, it’s only part of the story.
Gen Z is also entering adulthood at a uniquely difficult time economically.
They face rising living costs, expensive housing, insecure career pathways, global instability and growing uncertainty around how artificial intelligence will affect future jobs.
No wonder many feel anxious about the future.
COVID changed this generation forever
Every generation experiences defining moments. For Gen Z, that moment was COVID.
Older Australians lived through the pandemic too, but most adults already had established careers, relationships and identities.
Gen Z experienced the pandemic during their formative years - the stage of life where people normally develop social confidence, workplace skills and independence, and that matters enormously.
Simon points out that older generations were “impacted” by COVID, but Gen Z was “shaped” by it.
Schooling moved online. University experiences disappeared. Social development stalled. Young people lost critical years of face-to-face interaction and peer learning.
Many employers now notice the consequences in the workplace.
Younger employees often require more mentoring, more structure and more coaching around workplace communication and professional behaviour than previous generations did at the same age.
But smart employers understand this isn’t about weakness or laziness. It’s the result of extraordinary circumstances during critical developmental years.
Why Gen Z expects more from employers
Many older managers struggle with Gen Z’s workplace expectations.
Things like flexible hours. mental health support, remote work, purpose-driven employment, faster promotion pathways.
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To some employers, these demands sound unreasonable.
But Simon argues that these attitudes are less about entitlement and more about leverage.
Baby Boomers entered the workforce when unemployment was relatively high and workers had limited bargaining power. Gen Z entered during a labour shortage, where employers compete aggressively for talent.
Naturally, younger workers are using that leverage.
This generation also places far greater emphasis on wellbeing and meaning in work.
Many Gen Z workers don’t simply want a salary. They want to feel aligned with an employer’s values and culture.
That creates challenges for traditional businesses, but also opportunities.
Tip: Companies that provide flexibility, purpose, development pathways and supportive workplace cultures are likely to attract and retain stronger younger talent over the coming decade.
The biggest myth about Gen Z workers
One of the most common complaints about Gen Z is that they’re disloyal employees constantly jumping between jobs.
Interestingly, the data says the opposite.dem
Simon highlights that younger Australians today are actually less likely to change jobs than previous generations were at the same age.
That surprises many business leaders because it contradicts the popular narrative repeated endlessly on LinkedIn and in the media.
But demographics often reveals that the stories society tells itself aren’t always supported by evidence.
So why are younger workers staying put?
Housing affordability plays a major role. In previous decades, ambitious young workers could move interstate relatively easily to pursue career opportunities.
Today, relocating to Sydney or Melbourne often means competing in brutally expensive rental markets with limited housing availability.
That has reduced geographic mobility.
Note: In simple terms, many Gen Z workers aren’t changing jobs because moving cities has become too difficult and too expensive. This has important implications for labour markets, economic growth and urban development.
Gen Z and the future of property
While Gen Z may not yet dominate Australia’s housing market financially, they are already influencing where the market is heading.
Most are still renters. Many still live at home. And first-home ownership is increasingly delayed until their thirties.
But that doesn’t mean Gen Z has abandoned property aspirations altogether.
Instead, their housing journey is likely to look very different from previous generations.
Importantly, Gen Z is Australia’s most educated generation ever. That means many will eventually become high-income earners, particularly in knowledge-based industries.
However, many may continue renting longer, even as their incomes rise.
That creates growing demand for higher-quality rental accommodation.
Simon believes this is one reason the build-to-rent sector is gaining momentum, particularly developments offering lifestyle amenities, community spaces and convenience tailored to professional renters.
This is a significant shift because for decades, Australia’s property system has largely been designed around owner-occupiers, yet over time, we may see far greater demand for premium long-term rental housing as Gen Z reshapes housing preferences.
Diversity will change Australia even further
Gen Z is also Australia’s most culturally diverse generation.
Migration has played a major role in this.
Many young Australians either migrated here themselves or grew up in multicultural families.
As a result, Gen Z has far greater exposure to different cultures, religions and perspectives than previous generations.
Simon explains this through what sociologists call “contact theory” - the idea that meaningful interaction with different groups reduces prejudice over time.
This generation’s diversity is likely to influence everything from politics to consumer behaviour to workplace expectations.
Note: It also means businesses and investors who fail to understand multicultural Australia will increasingly struggle to stay relevant.
Gen Z will shape the political landscape too
Politically, Gen Z is already breaking old patterns.
Traditional party loyalty is weakening rapidly among younger Australians, with many feeling disconnected from both major political parties.
According to Simon, younger voters increasingly vote against parties rather than for them.
This creates growing political volatility.
Younger Australians are highly engaged with issues like housing affordability, sustainability, mental health and digital regulation, but they’re also deeply sceptical of institutions.
Over time, this could fundamentally reshape Australia’s political landscape.
The bigger picture investors must understand
Too many people still see Gen Z simply as “young people coming through” but that misses the bigger demographic story.
This generation is already influencing workplace culture, consumer behaviour, housing demand, political priorities and social values.
And their influence will only grow as their incomes, wealth and voting power increase.
As I often say, demographics isn’t just about who holds the money today.
It’s about understanding who will shape demand tomorrow.
And whether you’re running a business, building a property portfolio or planning for the future, Gen Z is a generation you simply can’t afford to ignore.
