Millennials overtake Gen X as Australia's Property Kings (and Queens)

Wednesday, 10 April 2024

Younger Australians are ditching the stereotype and diving headfirst into the property market, according to new research by Commonwealth Bank. Millennials (born between 1981 and 1996) now make up the largest share of new property investors, accounting for a whopping 46% in 2023. This surpasses Gen X (1965-1980) who came in second at 37%.

The study revealed a surprising number of millennials are going solo, with nearly a third choosing to purchase their investment property independently. The average investor age sits at 43, with an average loan size of just over $500,000.

This trend seems to buck the narrative of avocado toast-loving millennials priced out of the market. Despite soaring property prices and cost-of-living pressures, it appears a significant portion of this generation is prioritising property investment.

The data is further supported by statistics from the Australian Bureau of Statistics, showing lending to property investors grew by a significant 18.5% in the last year. This growth dwarfs the 13.2% increase for first home buyers and a modest 3.4% rise for owner-occupiers.

The top postcodes for new property investment purchases in 2023 were unsurprisingly concentrated in major cities' central areas and growth corridors. Sydney's CBD (postcode 2000) took the top spot, followed by West Melbourne (3029), North West Sydney's Marsden Park (2765), North Melbourne's Craigieburn (3064) and another North West Sydney suburb, Kellyville (2155).

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