Is the great Australian dream of home ownership out of reach for renters?

How old is too old for someone to be living at home with their parents? According to the Canstar Consumer Pulse Report, the majority (60%) of Aussies think it’s 26.

If you’re well over that number and still living at home, you’re not alone. The last few years of rising living costs and increasing rents have impacted Australians around the country, with many moving home in an attempt to get ahead.

How have renters fared over the last couple of years?

The rental crisis, ongoing inflation and higher interest rates have hit renters hard, with Canstar’s Consumer Pulse Report revealing 58% of renters had increases to their rental payments in 2024. These hikes average an additional $53 per week—or $230 per month— significantly straining household budgets.

Queensland renters were hit the hardest, facing average weekly increases of $58, while South Australians reported the highest proportion of renters affected by rent hikes.

How are renters keeping up with costs or saving?

Renters have continued to face the constant battle between paying rent and expenses while attempting to grow savings. According to the Canstar Consumer Pulse Report, just over one quarter of renters admit they are unable to save at all, while 35% reported they can no longer save as much as before.

Keeping up with bills and payments has meant 37% of renters have cut back on other living expenses, while 17% are looking for cheaper housing or turning to shared accommodation (7%). However, 26% say they can manage the increases with careful budgeting, and 14% report no impact on their finances.

The cost of living has also had an impact on renters’ hopes of owning their own homes, with 62% admitting increased living costs has meant they aren’t able to save to buy for a property.

The great Australian dream of property ownership doesn’t live amongst all renters, however, with 22% admitting they never intend to buy property at all.

How can renters get on the property ladder?

If you’re currently renting and hoping to buy your own place, but worried it just might happen, don’t worry just yet. While saving for and buying a home is a big dream that can require a lot of work, there are ways you could achieve it sooner.

Purchasing a property starts with having a clear and achievable savings goal in mind. By knowing what you can put away, you’ll know what size deposit you can build and ultimately, what kind of property you can buy.

• Increasing savings can start by reviewing bills and expenses to see where you can save, and also making sure you’re putting your money in an account that offers the best rate for you.
• It’s also worth looking into the schemes available through the federal government, which could help reduce the total cost of your purchase, or even have the government go as guarantor for your loan if you have a small deposit. While this could be a great option, it’s worth reviewing the tight qualifying criteria that comes with these schemes.
• Finally, it can help to consider all the options when looking to buy, including different types of property (unit instead of house) or if you’re investing, you could look into a different suburb, city or even state! Canstar’s recent Deposit Stars report identified a number of high rental yield properties available with just a $50,000 or $100,000 deposit.

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