How Gen Z is beating the housing squeeze as auctions surge

Australia's housing market continues to show resilience, with auction activity holding firm despite a slight dip in numbers this week.

According to Cotality Research Director Tim Lawless, 2,157 properties went under the hammer across the combined capitals, representing a 1.5 per cent decline on the previous week. However, this still marked the third consecutive week where volumes exceeded the 2,000 mark.

Looking ahead, auction numbers are set to rise significantly, with around 2,440 homes scheduled for next week and volumes climbing further to approximately 2,600 the week after.

The national clearance rate also softened slightly. The combined capitals preliminary clearance rate came in at 75 per cent, down 1.2 percentage points on the prior week.

Even so, Lawless noted that this was the fourth week in a row where clearance rates have held at or above the 75 per cent mark, underlining strong buyer demand as the spring selling season gathers momentum.

Melbourne led in terms of auction volumes, hosting 1,110 homes under the hammer, up 2.6 per cent on last week and the city's busiest week since early June. The preliminary clearance rate slipped to 73.2 per cent, the lowest in four weeks but still marking the nineteenth straight week above 70 per cent.

Sydney recorded 731 auctions, down almost 10 per cent from the previous week. The city's clearance rate remained the strongest in the country at 78 per cent, though slightly lower than last week's 80.3 per cent. Auction volumes in Sydney are expected to increase sharply, with 930 auctions scheduled for next week and more than 1,000 the week after.

Brisbane saw a lift in activity, with 143 auctions compared to 123 the week prior. The city's clearance rate surged to 76.5 per cent, the highest recorded since July 2024. Adelaide, meanwhile, hosted 91 auctions, a near 12 per cent decline on the previous week. Its clearance rate came in at 74.5 per cent, only marginally lower than the week before but still marking five consecutive weeks above 70 per cent.

Canberra recorded 69 auctions with a clearance rate of 71.9 per cent, the lowest in five weeks. Perth saw 12 homes auctioned, with a success rate of 72.7 per cent, while Tasmania recorded just one auction.

The auction market has now reached its strongest point in two years, as recent interest rate cuts prompt buyers to compete more aggressively for available homes. However, potential sellers have been slower to respond to the more favourable lending environment, leaving fewer properties on the market compared with last year. This has deepened the imbalance between supply and demand, putting additional upward pressure on prices.

While competition remains fierce, younger Australians are adapting. The latest research from View.com.au reveals that Generation Z is finding creative ways to climb onto the property ladder, despite affordability constraints.

Many are relying on family support, with parents increasingly allowing children to live at home longer to save for a deposit. Almost a quarter of parents say they would be happy for their children to stay indefinitely to help ease the financial burden.

In return, Gen Z buyers are showing strong commitment to repay that support, with nearly half planning to reimburse their families, and some even offering to pay interest.

At the same time, a shift in mindset is emerging. For many young Australians, a home is no longer simply a place to live but a strategic financial tool. More than half say they would consider renting out part of their home, converting it into an investment property, or even running a small business from the premises.

As spring unfolds, the property market shows no signs of slowing. Auction volumes are rising steadily, clearance rates remain strong, and buyer demand continues to fuel competition.

While affordability challenges persist, especially for younger Aussies, the combination of strong demand, limited supply, and Gen Z's creative approach to home ownership is shaping a competitive housing landscape in 2025.