Are Young Australians Giving Up on Home Ownership? Insights from Groundbreaking Research on Property, Mindset & Financial Resilience
In Australia, property ownership has long been seen as a rite of passage — the milestone that marks adulthood, financial success, and stability. But what happens when an entire generation starts to question whether it’s even worth it?
In this eye-opening episode of the Australian Property Investment Podcast, host Aaron Christie-David sits down with Professor Elizabeth Sheedy, household finance expert and lecturer at Macquarie University, to unpack one of the most thought-provoking studies on young Australians and their evolving relationship with home ownership.
Professor Sheedy’s research, based on months of deep qualitative interviews with 70 Australians aged 18–40, reveals a surprising shift: many young adults are rejecting the dream of owning property altogether — not because they can’t afford it, but because they no longer see it as desirable.
This blog dives deep into the key findings from the episode, the societal and financial forces behind them, and what they mean for home buyers, renters, property investors, and policymakers alike. Watch the full episode here.
🔍 Home Ownership: Still the Dream or an Outdated Burden?
We often assume that home ownership equals financial success. That it’s the end goal. That once you own a property, you’ve “made it.” But Professor Sheedy’s data tells a more complex story.
Through intimate, repeated interviews with participants across various life stages, she found that:
- Many young Australians still aspire to own a home — but the roadblocks (cost, debt, life stage flexibility) make it feel increasingly out of reach.
- Some are actively rejecting homeownership, even with the financial capacity to buy.
- A significant minority are ambivalent — not chasing the dream, but not entirely closing the door either.
This study isn’t just about money — it’s about mindset, values, and how shifting life priorities are influencing our biggest financial decisions.
🏠 The Risks We Don’t Talk About
One of the most startling insights from Professor Sheedy was this:
“Homeowners, particularly in the early years, actually experience lower financial wellbeing than renters.”
Wait — what?
That’s right. Owning a home doesn’t automatically make you wealthier or happier. Especially in the beginning, many homeowners feel financially stretched, burdened by hidden costs, maintenance, unexpected damage, or bad construction.
Add to that:
- Strata issues
- Property defects
- Poor insurance cover
- Toxic neighbour or tenant interactions
- Stress from navigating approvals and legal paperwork
And you begin to understand why home ownership isn’t always the fairytale it’s cracked up to be.
💡 What Is “Risk Management” in Property?
In finance, we talk a lot about interest rate risk — and yes, most buyers today are aware of how RBA rate decisions affect their loans.
But there are many under-discussed risks in property:
- Build quality risk: Did the builder cut corners?
- Climate risk: Are you exposed to floods, fires, or storms?
- Maintenance risk: Can you afford ongoing upkeep?
- Insurance risk: Are you adequately covered?
And perhaps most dangerously: the false sense of security that owning a property = stability. For many, that illusion is shattered the first time a major issue arises.
🎭 The “Mortgage Prison” Mindset
What do you call a 30-year mortgage?
According to Patrick (38, good income, renting in Sydney’s eastern suburbs): “A death contract.”
Patrick’s story was one of many in the study who equated a mortgage not with freedom, but with bondage. And he’s not alone.
Professor Sheedy highlighted a growing psychological trend among younger Australians:
- Viewing debt as undesirable and limiting
- Prioritising lifestyle flexibility
- Valuing experiences over ownership
Some would rather rent forever than give up travel, creativity, or career agility just to “climb the ladder.” For these people, property doesn’t feel like a dream — it feels like a trap.
🧬 Freedom vs. Stability: A Generational Shift
Another recurring theme was the tension between freedom and stability.
- For Baby Boomers and many Gen Xers, homeownership was the foundation for adulthood and family life.
- For many Millennials and Gen Zs, homeownership feels like the end of freedom.
One participant, Linda, bought a home with a partner. After a breakup, a storm damaged the roof, her insurance short-changed her, and she was left paying a mortgage on an uninhabitable house and her rent interstate. The result? She’s scarred for life and never wants to own again.
Then there’s Jessica, 24, who says she might want to buy later — but right now, it’s all about travel, friends, and experiences.
Aaron put it well:
“At 24, you should be able to live life on your terms. You don’t have to be shackled to a mortgage.”
This highlights a profound generational change: freedom and flexibility now rank above security and status for many young Aussies.
🏚️ The Cost of Being “House Poor”
Michelle Obama coined the phrase “house poor”: when you technically own a home but are financially stressed and stretched thin.
It’s a reality for many new homeowners today. With property prices skyrocketing and interest rates climbing, more people are:
- Sacrificing their lifestyle for their loan
- Struggling with basic upkeep costs
- Wishing they hadn’t bought when they did
Aaron raised a crucial point:
“No one’s heart bleeds for you if you own a home — but behind the scenes, many are suffering silently.”
📊 Declining Ownership, Rising Rent Demand
One silver lining for property investors?
If more Australians choose to rent permanently, demand for quality rentals will increase.
But here’s the catch:
- Renters want longer-term security.
- They want ethical landlords.
- They want to be treated like humans, not just a “yield.”
Professor Sheedy shared horror stories of renters being mistreated — something that’s fuelling demand for institutional landlords (like build-to-rent models) over “mum and dad” investors.
So, for individual investors, the message is clear:
“If you want to stay competitive, be a good landlord. Otherwise, renters will seek more professional alternatives.”
📉 Cost of Living, Coping Mechanisms & Financial Resilience
In a follow-up study, Professor Sheedy tracked how the same 70 participants navigated the rising cost of living in 2023.
Key insight?
Financial resilience isn’t just about how much you earn — it’s about how well you adapt.
Some strategies participants used:
- Moving back in with parents
- Switching jobs for better pay
- Starting side hustles
- Cutting unnecessary expenses
Others felt totally stuck. Particularly single parents, who lacked time, flexibility, or mental bandwidth to pivot.
Social capital (having family/friends to lean on) and psychological resilience (ability to accept discomfort and change) played a massive role.
💭 The Smashing Truth About Smashed Avocados
Yes, Bernard Salt’s famous smashed avo comment came up.
And surprisingly, Professor Sheedy agrees — to an extent.
Yes, some young adults are extremely disciplined. But others are spending freely on Botox, luxury travel, and designer brands without saving or planning.
“I’m 62 and I’ve never had Botox,” she laughed. “Why spend your money that way in your 20s?”
Aaron made the connection to fitness:
“It’s like wanting to get fit but eating junk food every day. If you want property, your bank statements have to match your ambition.”
🪙 Don’t Want to Buy? You Still Have to Invest
Here’s where things get real.
If you choose not to buy a home, you must still invest elsewhere — or risk retiring in poverty.
Professor Shi stresses this:
“Our pension system assumes people own their homes. If you plan to rent for life, you need to invest the savings you make from not having a mortgage — in shares, ETFs, or super — or you’ll be eating cat food in retirement.”
Aaron added:
“Investing never goes out of fashion. Whether you buy your home or rentvest, you’ve got to move the needle on your financial future.”
🧠 Policy Implications: Should the Government Keep Propping Up Ownership?
A big takeaway from the episode is that current policies assume everyone wants to own property. But what if that’s no longer true?
Should we:
- Stop subsidising first home buyers?
- Put more support into rental reform?
- Rethink negative gearing and capital gains tax discounts?
Professor Shi predicts that as attitudes change, policy will have to catch up. Investors should prepare for that debate.
“Why do we give massive tax breaks for one asset class (property) and not others (like shares)? It’s hard to justify long-term.”
🎯 Key Takeaways
Whether you’re a seasoned investor, a first-time buyer, or someone trying to figure out your next move — here’s what this episode reinforces:
✅ Home ownership isn’t one-size-fits-all
Not everyone wants it. Not everyone needs it. But everyone needs a plan.
✅ Property comes with real risks
It’s not always a guaranteed path to wealth — and early years can be financially draining.
✅ Renting isn’t failure
But you must invest that surplus money, or risk falling behind long-term.
✅ Financial resilience is mindset + adaptability
It’s not just how much you earn. It’s how well you pivot.
✅ Investors must evolve
Better tenants want better landlords — professionalism and ethics will win in the future market.
📞 Want Help Getting Into the Market — or Scaling Your Portfolio?
Whether you’re a first home buyer trying to get over the deposit hurdle, or a seasoned investor planning your next move — having the right lending strategy is key.
💬 Contact the team at Atelier Wealth — we’ll help you structure your finance for success, make the most of what’s available to you, and find a path forward in any market.
📣 Want to join a community of growth-focused property investors?
DM us “Accelerator” and we’ll share how to get involved.
