Gen Z buyers increasingly focus on investment possibilities – John McGrath

I’ve talked recently about 46-60-year-old Generation X (Gen X) or the “sandwich generation”, and how this group is shaping current and future housing, including government policies.

But following close behind Gen X is the very different Gen Z group, who are also significant, albeit for dissimilar reasons. For a start, don’t be fooled by Gen Zers’ younger age of 14 to 29 years old.

Gen Zers are actually a determined, confident and focussed cohort who have a stronger understanding of politics, ethics and similar than their parents or grandparents did at the same age.

This is partly because Gen Z is the first generation to have experienced the internet, mobile phones, and social media, since birth. Hence, this tech-savvy generation has plenty of discernment and insight, especially when it comes to financial issues such as buying a home.

This is pretty impressive considering Gen Z is facing far higher prices for both renting and buying than any other generation before them, relative to their wages. They’re certainly far less likely to own a home in their 20s, than even their parents.

Honing in further on Gen Zers, a Regional Australia Institute and YouGov survey last month found 40% of this group were prepared to move from metropolitan locations to regional areas, largely because of the latter’s more affordable housing and cheaper cost of living.

At the same time, Westpac’s Home Ownership Report in November 2025 showed 35% of Gen Zers plan to buy their first home within five years, up 5% since January 2025. In addition, this group is finding plenty of reasons to buy. Motivations to purchase include a desire for independence (37%); financially security (34%); and not wanting to rent forever (32%).

More than half of Gen Z buyers (55%) are also considering rentvesting. This purchasing opportunity means buyers buy an investment property in an affordable area, while simultaneously renting a home in a more desirable, but possibly more expensive, location. In other words, you’re an investor and a tenant at the same time.

Or, you could say, rentvesting gives buyers the best of both investing and renting worlds.

Equally, rentvestors need to ensure their budget covers their own rent plus their investment property’s maintenance and other costs. These can include possible property manager and strata fees, as well as landlord insurance. Most importantly, not every lender offers specific investment loans, and as these loans are also considered to be riskier than owner-occupier ones, they often mean higher interest rates and stricter lending conditions for borrowers.

But in good news, investment tax benefits can balance out these costs, as can the excellent home ownership benefits for rentvestors. It’s definitely no surprise that rentvesting is popular with tech-savvy, Gen Zers, who are keen to buy property in the smartest, and best, way possible.