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Undesirable features no longer deter first home buyers
Rubbish tips, cemeteries, and motorways are no longer considered dealbreakers for many, as Gen Z buyers compromise to get on the property ladder.
As stock tightens, properties that were previously seen as unattractive have become more viable options, particularly for younger and first-time buyers.
According to recent Westpac data, just over one in five first home buyers were likely to rule out a property due to location “dealbreakers”, proving to be more willing to compromise.
Traditionally, buyers have turned away from properties with undesirable features, but as property values have continued to rise, many have been left with fewer options, prompting them to reconsider their dealbreakers.
While 41 per cent of buyers were turned off by proximity to a waste management facility, only 30 per cent of Gen Z considered it a dealbreaker.
Only one in four considered an airport or flight path a dealbreaker, compared with the national average of one in three.
The trend continued across the board, including with busy motorways, where 26 per cent of Gen Z said it was a dealbreaker compared to a national average of 37 per cent.
Similarly, cemeteries were considered a deal-breaker by 22 per cent of younger buyers, compared with an average of 26 per cent.
Gen Z buyers considered nearby undesirable amenities to be dealbreakers significantly less than the national average, showing a willingness to compromise to secure their first property.
Westpac chief executive, consumer, Carolyn McCann said that the lack of affordability in the market had prompted many first-time buyers to reassess what they could compromise on in order to achieve ownership.
“Rather than holding out for their ideal suburb or property, many are focusing on finding a location that helps them take that first step into the market,” McCann said.
“That might mean considering a different suburb or a home that doesn’t tick every box if it helps them get started on their home ownership journey.”
Beyond dealbreakers, McCann said that first home buyers were extending their search further from their favoured locations.
As affordability pressures piled on buyers, the data showed almost three-in-four had considered purchasing outside areas they had previously considered, while expectations shifted across the market.
Over the past five years, intent to buy a house declined by eleven percentage points to just 53 per cent, while apartments, units and townhouses all saw a jump of 12 percentage points.
“A first home doesn’t need to be a forever home. For many Australians, it's about making a confident first step to create more options for the future.”
“Home ownership is a long-term journey, so understanding the opportunities and trade-offs of different pathways into the market can help buyers make informed decisions and stay focused on their longer-term goals.”
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