How the housing squeeze is reshaping the next generation

Australia is navigating a complex challenge where declining fertility rates, immigration, limited housing supply, and the rising cost of living have created a perfect storm.

The “Supply-Demand Squeeze” is a trend we expect to have a significant impact on the year ahead. For many younger Australians, the traditional idea, that hard work leads to home ownership is perceived as broken. This sentiment is widespread, shared by 65% of all Australians who say they strongly/somewhat agree the traditional pathway to owning a home is broken for the next generation. This pressure on a core life goal is fundamentally changing the emotional landscape of the nation, shifting the primary focus from individual ambition to collective frustration and dependency. The core dilemma is the acceleration of asset prices outpacing wage growth. This fuels a powerful perception that Australia is increasingly the land of the haves, and the have-nots, a belief that has surged from 45% in 2021 to 54% today.

The supply-demand squeeze of housing along with other financial pressures has knock on effects to other areas of society. The stress of the squeeze extends beyond the housing market as it directly impacts other choices like starting a family. When asked, the top concerns about starting a family are primarily financial: 49% say the cost of raising children, followed by wanting to be financially secure (33%) and general economic uncertainty (28%).

Australia is projected to reach 30 million people by 2030, a major issues takes place when the population grows without fit-for-purpose housing. This is felt by 61% of Australians who say they’re frustrated that housing supply hasn’t kept up with demand.

As we enter 2026 it’s important to understand the context of employees, customers and communities to better understand how to communicate and engage. For all of the trends impacting 2026 download the infographic.