Strategies young Australians are using to get into the property market

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Penny
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Asian woman at desk at home with two young children (a boy and girl) playing in the background.

Despite rising prices, strong competition and limited supply, not all young Australians have given up on their homeownership dreams (and honestly, why should they?). The market is a lot tougher to crack than it was for previous generations, but with the right strategy, flexibility and support, many Gen Z and Millennial buyers are still making it happen.

At Penny, we’re seeing the same determination across our community. Young women juggling career changes, cost-of-living pressures and insecure housing looking for practical ways to move forward, even if the path looks different from the traditional ‘buy a home on your own (or with a partner) with a 20% deposit’ story.

These are some of the strategies young people are using to get into the market today.

1. Alternative ownership structures

Co-owning with friends or siblings

With property prices continuing to climb, many young buyers are realising they simply can’t take on the market alone. According to research from Compare the Market, 44% of Gen Z and 30% of Gen Y are considering buying with a friend or sibling (compared with just 18% of Baby Boomers).

Pooling incomes and deposits can dramatically boost borrowing power, speed up timelines and make once-out-of-reach suburbs realistic.

What to think about:

  • Put a co-ownership agreement in place. Get legal advice. There are also now platforms that specialise in co-ownership.
  • Decide how you’ll divide costs and maintenance
  • Plan for exit scenarios early (buyout, refinance, sell)

This strategy isn’t for everyone, but for many, it’s the bridge between renting forever and finally entering the market. Check out our first home buyer checklists in the Penny app, for questions to ask before buying with someone else.

Buying with a partner

This is becoming increasingly common. Westpac research shows 56% of first home buyers are now planning to buy with a partner, up from 40% just three years ago.

Two incomes can make a huge difference, especially in high-cost cities like Sydney where median house prices hit $1.65 million. If you’re aligned in your goals, timeline, suburb and budget, this can be one of the most straightforward paths into your first home.

Rentvesting

Rentvesting allows you to get onto the property ladder without moving away from your life, community and work.

Here’s how it works:

  • You buy an affordable investment property (often in a different suburb or even city)
  • You rent it out
  • You continue renting in an area that suits your lifestyle

It’s becoming increasingly popular, especially in Sydney and Melbourne. According to NAB data, young Australians are the group most willing to rentvest, with first home buyer investor loans rising 12% in 2024. In fact, 1 in 2 first home buyers is now considering rentvesting instead of buying their own home to live in.

Why it works: It lets you build equity sooner while maintaining lifestyle, relationships and career stability. You get exposure to the property market without having to compromise on where you actually want to live.

2. Making the most of first home buyer programs

There are more pathways than ever to help first home buyers get started.

First Home Guarantee (from 1 October 2025)

From 1 October 2025, the first home guarantee was expanded to remove place limits, and income caps. Property price caps were also increased.

This means any eligible first home buyer can buy with a 5% deposit and pay no Lenders Mortgage Insurance (LMI), a saving of tens of thousands. However, not all lenders participate in these schemes and your repayments will be higher than if you put down 20%.  

This scheme is fast becoming one of the most impactful for young Australians, with 1 in 10 loans in October issued to first home guarantee applications.

First Home Super Saver Scheme

You can withdraw up to $50,000 of voluntary super contributions for your deposit. Since contributions are taxed at just 15% (instead of your marginal tax rate), it can significantly speed up your savings.

Help to Buy scheme

A shared-equity model where the government contributes up to:

  • 40% for new homes, or
  • 30% for existing homes

Available to singles earning under $90,000 and couples under $120,000, with only a 2% deposit required.

First Home Owner Grant

Amounts vary by state. For example, Queensland offered $30,000 until June 2025, while South Australia provides up to $15,000. It’s a tax-free cash boost toward new homes that can make a real difference.

For many buyers, these schemes can move the dream from ‘years away’ to ‘doable this year’.

Family / Parental support (if it’s available to you)

More young buyers are turning to family for support, and parents are increasingly open to helping. Survey data from Compare the Market shows 30% of buyers say their parents are willing to assist, while 82% of parents say they want to help their children enter the market.

Support can look like:

  • Cash gifts for deposits
  • Acting as guarantor on your loan
  • Interest-free loans (properly documented so it doesn’t affect their Centrelink benefits)
  • Rent-free living to fast-track savings
  • Co-ownership

With a guarantor, borrowers can sometimes access up to 100% of the property cost, avoiding the slow deposit-saving grind altogether.

The reality: We know not everyone has this option, and that’s okay. There are still other pathways available, they might just take a bit longer.

3. Compromising on location

3 in 4 young buyers say they’re willing to compromise on location, up 9% from three years ago according to Westpac research.

This includes:

  • Moving to more affordable outer suburbs
  • Choosing older or smaller properties
  • Embracing apartment living (61% of Gen Z are open to this, compared with just 37% of Baby Boomers)
  • Considering regional areas where property is more affordable

Expanding your search can dramatically increase your options and speed up your timeline. Plus, once you’re already in the market, it’s easier to use the equity in your property to upgrade to home you actually want.

4. Building deposits (and wealth) through investing

Some young Australians are using investing, particularly ASX shares and exchange-traded funds (ETFs), to build wealth and accelerate their deposit savings.

According to Westpac research, shares continue to be the most popular investment vehicle among young investors. When used alongside a solid savings strategy, they can help shorten the time it takes to buy, though it’s important to remember that shares come with market risk.

Making it happen

With median house prices hitting $1.65 million in Sydney and the average Gen Z income sitting just over $106,000, today’s buyers are operating in one of the toughest affordability environments Australia has ever seen.

But young Australians are also adapting to the market and are finding strategic ways to enter the market.

There’s no single ‘right’ way to buy. There are many.

And at Penny, we’re here to help you understand them, compare your options and build a personalised plan that gets you closer to your first home, one clear step at a time. Sign up to Penny today.

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