By Michael Yardney July 4, 2025

A A A

0 View comments

New Survey Reveals a Quiet Shift in Aussie Homeownership

Weekly Latest
New Survey Reveals a Quiet Shift in Aussie Homeownership

Key takeaways

Westpac’s latest Housing Pulse shows a quiet shift: Aussies are warming back up to homeownership.

While affordability concerns and rate pressures persist, sentiment among owner-occupiers is improving.

There's renewed interest in lower-density housing, detached homes and small-unit blocks. suggesting a continued post-COVID preference for space, lifestyle flexibility, and autonomy.

Policymakers must encourage investor participation and facilitate first home buying, or risk worsening the housing crunch.

For proactive investors: now’s the time to plan, secure finance, and position yourself.

Don’t wait for the headlines to tell you it’s time, opportunity favours the prepared.

Is Australia finally falling back in love with homeownership?

Westpac’s latest housing survey says… maybe

Once upon a time, owning a home was the Great Australian Dream, etched into our psyche like Vegemite on toast.

But in recent years, that dream's been dented by sky-high prices, interest rate hikes, and affordability woes.

So it’s fair to ask, have Aussies given up on homeownership altogether?

According to the latest Westpac Housing Pulse, there’s been a quiet but notable shift.

While economic challenges remain, the desire for homeownership seems to be stirring again.

Owner-occupier confidence is rebounding

After a tough few years, owner-occupiers are beginning to show signs of cautious optimism.

Westpac’s consumer survey showed that home buying sentiment has ticked up, especially among owner-occupiers.

Home Ownership Buying Intentions

Confidence isn’t roaring back, but it’s definitely rebounding.

According to their data, preferences are leaning toward lower-density housing, with detached houses and units in smaller blocks being favoured over high-rise apartments.

Home Ownership Property Type Size

That’s an important signal.

It reflects not just affordability concerns, but also lifestyle shifts that have accelerated post-COVID.

People want space, flexibility, and a sense of control, something you’re less likely to get in a 40-storey tower with rising strata fees and a revolving door of neighbours.

For investors, this is a nudge.

It suggests there’s a stronger underlying demand for family-friendly properties, apartments, villa units and townhouses, particularly in established suburbs that offer amenities, schools, and transport access.

First home buyers: interest but no urgency

Now here’s where things get a bit more nuanced.

First home buyer sentiment is still sitting below average, despite surging population growth and rental market stress.

According to Westpac’s data, many would-be buyers are interested, but they’re not in a hurry.

Why the hesitation?

Simple: At the time of the survey, many were being priced out or struggling to navigate tighter lending criteria.

Furthermore, concerns about job security and affordability haven't disappeared simply because inflation has cooled slightly.

Add to that the steady drumbeat of media negativity, and you’ve got a recipe for deferral, not action.

That’s not to say the desire isn’t there; it is.

But desire without capacity or confidence doesn't translate into market activity.

However, I believe that’s going to change over the next couple of months as the federal government’s new home buying first homebuyer incentives come into play, particularly after first of January 2026, when first homebuyers will be able to buy with only a 5% deposit.

Home Ownership Age By Location

The investor conundrum: still out in the cold

Interestingly, investor sentiment remains weak according to Westpac’s survey.

That won’t surprise seasoned investors who’ve watched state and federal governments roll out a red carpet of disincentives—from rising land taxes to anti-landlord rhetoric.

Westpac’s survey shows property investors continue to face an uphill battle in terms of sentiment.

While savvy investors see opportunity in today’s low-sentiment, high-rent environment, most remain cautious.

That means fewer investors are building rental supply at a time when we desperately need more of it.

And yes, that’s part of why rents continue to surge.

What this all means

There’s a subtle but important message in Westpac’s latest numbers: we’re entering a new phase in the housing cycle, one where:

Owner-occupiers are regaining confidence, especially those upgrading or buying family homes;
First home buyers remain on the sidelines, not because they’ve given up, but because affordability and borrowing limits are still major hurdles. And this will change in around 6 months when the 5% first home buyer scheme kicks in.
Investors are missing in action, which bodes poorly for rental supply and long-term housing affordability.

For policymakers, this should be a wake-up call.

Without investor participation and improved pathways for first home buyers, housing pressures will intensify.

For investors like us, though? This is where opportunity lives.

When the herd is cautious and sentiment is low, savvy buyers can negotiate well, buy quality assets, and position themselves for the next upswing.

Remember, markets move in cycles, but wealth is built when others hesitate.

Why now is a window of opportunity for strategic property investors

I believe we’re in a window of opportunity for property investors who take a long-term view.

Right now, we’re seeing what some would call a “perfect storm” of fundamentals that are aligning to support strong property markets in the years ahead:

Continued rapid population growth is putting pressure on housing.
An acute undersupply of dwellings,
A chronic shortage of skilled labour, making new development slower and more expensive.
Inflation has moderated, now sitting within the RBA’s target range.
Interest rates will keep falling, bringing more buyers into the market
Government first homebuyer incentives will pour fuel on the flames of our undersupplied housing market.

As interest rates keep falling and confidence returns among both buyers and sellers, we’ll enter the next phase of the property cycle.

And historically, this stage has delivered some of the best capital growth for those who act early.

To be clear, I’m not suggesting anyone try to "time the market", that’s nearly impossible to get right consistently.

However, many successful investors built significant wealth by buying during the early stages of an upturn, when fear still lingered and competition was low.

Looking ahead, demand will continue exceeding supply for the foreseeable future. Strong immigration, restrictive planning regulations, and the slow delivery of new housing stock will keep upward pressure on prices.

Meanwhile, the cost to deliver new dwellings is rising and will continue to rise.

It’s not just supply chain issues or labour shortages—it’s also financial viability. Developers won’t launch projects unless the numbers stack up, and right now, that means new stock will need to enter the market at significantly higher prices than existing homes.

Eventually, as interest rates ease further and media headlines turn positive, consumer sentiment will rebound.

Pent-up demand will be unleashed. And just as it always does, greed (FOMO) will overtake fear (FOBE – Fear of Buying Early) as the cycle kicks into gear.

So if you’re in a financially stable position and thinking of buying your next home or investment property, this may be your moment.

Because in property, like in life, you don’t get rewarded for waiting. You get rewarded for acting with clarity while others are uncertain.

Fact is, the smart money is already on the move.

But what about you?

Are you clear on how to take advantage of these market conditions — or are you still waiting for "certainty"?

That’s where our Complimentary Wealth Discovery Session comes in. We’re offering you a 1-on-1 chat with a Metropole Wealth Strategist to help you:

Clarify your financial goals
Understand how macro trends affect your position
Build a personalised, data-driven property strategy
Get ahead of the curve — before everyone else piles in

There’s no cost, no obligation — just practical, tailored guidance based on decades of experience.

Click here now to book your free Wealth Discovery Session

About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.