New data shows that Millennials are digging deep to save for a home, even prioritising home savings over holiday and travel savings.
The data from Westpac shows an increase in the number of first home buyer loans issued by Westpac compared to the same period in 2017 and 2016.
The data also showed that Millennials are increasingly saving towards home ownership, above other financial goals.
Seventy per cent of Westpac’s customers aged 25 to 34 are saving for a home, which is 10 times more than those saving for travel and is the most common savings goal for the age group.
Westpac head of savings Kathryn Carpenter said that Millennials are being careful with their savings and are striving to buy a home.
“Millennials are often depicted as a generation more focused on life experiences and living in the ‘now’.
“However, our research shows that many are, in fact, taking saving for a home deposit seriously and prioritising it above other goals including travel or lifestyle.”
Ms Carpenter said that young Australians did have a tough time saving up for a home given the current property climate.
“To save up to 20 per cent for a deposit, you’re looking at over $100,000 for the average dwelling in Australia. This is a substantial amount of money for young people to save in the current climate even with cooling property prices,” Ms Carpenter said.
The Westpac data also revealed that home savers are starting even younger, with 18- to 24-year-olds already starting to save for a home, but holiday and travel are still more popular for that demographic.
“Our data shows reaching 25 appears to be a key tipping point for customers moving from thinking about saving for a home to seriously saving for one,” Ms Carpenter said.
Across all other age groups, holiday and travel is the number one savings goal, particularly among the 55+ age group.