Australia has long worshipped at the altar of property, though the next generation is becoming less convinced of the benefits promised by buying into the great Australian dream.
Izzy Honan is a 25-year-old homeowner experiencing the daily reality of holding a mortgage as a string of five interest rate hikes heaps immense pressure on borrowers.
The ongoing rate increases in 2026 have left the apartment owner “struggling” and questioning why there isn’t more information about the realities of homeownership.
“There’s this huge Australian dream that we’re all brought up believing in: buy a property, get yourself onto the property ladder and you’ve made it,” Honan said in a video posted to social media.
“I think there’s a conversation that we’re not having enough of and that’s what happens after you purchase the property.”
Honan noted she hasn’t seen enough people talking about the difference between buying a property and actually being able to afford to keep it.
The banking industry worker explained that her insight into the market has shown her how difficult things are becoming for her generation.
“Property prices at the moment are so ridiculously high that even getting into the market to begin with is pretty much impossible unless you’re buying with someone else, you have a guarantor, or let’s face it, you’re using the bank of mum and dad,” Honan said.
“And then when you do manage to get in the door, the financial pressure does not stop.”
The Reserve Bank of Australia last week increased the cash rate to an 18-year high of 4.85 per cent, with the latest hike expected to add at least another $100 to average monthly mortgage repayments.
Honan’s repayments have soared by around $600 a month since the beginning of the year, leaving her paying an extra $7,164 annually, according to Yahoo Finance .
The increasing costs have taken their toll.
“I find myself asking, how is this the Australian dream when I’m constantly anxious if I can afford my mortgage or not?” she said.
Finder home loan expert Richard Whitten told Domain this week that about 38 per cent of Australians say they are struggling in some way to pay their mortgage.
At the same time, consumer confidence has sunk to lows not seen since the global financial crisis nearly two decades ago, according to Westpac’s latest Consumer Sentiment Report.
The bank found confidence had fallen to levels similar to the COVID-19 pandemic and previous recessions.
“I’d love to say that I’m living the Australian dream, but I don’t think the Australian dream involves this much anxiety and stress,” Honan told Yahoo Finance.
Investors fled, prices fell. So, why can’t first-home buyers get in?
A record investor retreat was meant to give first-home buyers a fighting chance, but five rate hikes and shrinking borrowing power have left them struggling to take advantage.
Property market recovery unlikely until late 2027 after fresh rate blow
The RBA's latest hike has triggered warnings of a record 14 per cent plunge in home values.
In one move, another 30,000 are locked out of the great Australian dream
The alarming figure is part of new modelling showing the impact of rate hikes on millions of people.
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