Australia’s Gen Z are the generation most willing to cut their spending way back to afford a home, according to Cotality data reported by AAP.
The figures show more than 75% of all Australians were curbing their outgoings in pursuit of property, meaning we are more likely to do so than our Canadian, US and UK peers (for whom the figures sat below 70%).
Levels of discretionary spending, like eating out, owning a car, and even moving from the family home into a sharehouse, have dropped among young adults in recent years.
But it wasn’t just first-time buyers making significant financial sacrifices to climb the ladder. Millennials – the largest buyer cohort in the world – are readily forgoing small luxuries to afford homes large enough for their families.
Prospective buyers were selling their second car or putting off holidays while their children were young, Capital Buyers Agency owner Claire Corby said.
For many, it’s around delaying things like going away, or reducing things like dinners out. People are leaving where they want to live and buying in cheaper markets.
Most Australians would not be persuaded to participate in the housing market until mortgage interest rates hit a 4.9% average, the data revealed.
The average rate for an owner-occupier in August 2026 was 6.3%, meaning the market is likely to stay quiet for some time and allowing bold buyers to swoop in.
People are being conservative and cautious.
Catie McLeod
The opposition’s defence spokesperson, James Paterson, has questioned the timing of the prime minister’s announcement that an AI agent hacked Medicare.
Paterson made the claim on the ABC’s 7.30 program last night after Anthony Albanese publicly disclosed that an AI agent developed by OpenAI hacked Medicare in June and that the tech giant only notified the government earlier this month using an email sent to a “public mailbox”.
Paterson told 7.30 he believed Albanese had chosen to make the announcement at the UN summit in New York, as part of his effort to stand up to “big tech” on AI.
The senator said:
The government has questions to answer about when they knew and … why the prime minister decided to disclose it in the way he did in the place he did at the time he did. But in terms of the nature of the potential of actual security breach this is the bottom end of the spectrum of seriousness.
I don’t think it was a coincidence. I think it neatly dove-tailed with the political agenda the prime minister has in New York City.
Paterson said he didn’t consider the breach to be overly serious because the data the AI agent accessed was made freely available to researchers and academics studying the health system, and was not personal or private in nature.
He said the breach was cause for “being alert but not alarmed”.
Nevertheless, he said Australians were “entitled to demand explanations and contrition” and to want high levels of confidence when entering into agreements with big tech companies such as OpenAI.
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories and then it’ll be Nick Visser with the main action.
About the Author
