Property has long been Australia’s default wealth-building strategy, but a growing number of Australians are hitting pause on their plans.
For decades, the strategy was simple: save a deposit, buy property, build equity, repeat. But that path is becoming harder to follow, and for a growing number of Australians, it no longer feels worth following at all.
A recent Vibrant Insights report found 35% of surveyed Australians are “quitters” who cannot afford or have chosen not to buy a first home or investment property, up from 25% in 2024 and 30% in 2025.
However, this doesn’t mean Australians have given up on the dream, just that getting there may require a different kind of journey.
Who’s stepping back and why
According to Vibrant Insights, there are two groups driving the trend:
- First-home buyers who want to get onto the property ladder but can't make the numbers work. House prices have grown faster than wages, pushing deposits further out of reach. Domain's 2026 First Home Buyer Report found it now takes an average of five years to save for an entry-level home.
Higher interest rates have made borrowing harder too, reducing how much buyers can borrow and pushing up repayments for those who do get approved.
- Existing homeowners who have lost interest in investment property, making up 70% of those stepping back. The government's proposed changes to negative gearing and capital gains tax have added uncertainty for investors who might otherwise have taken the next step. On top of that, higher rates, rental yields that don't always cover costs, and rising insurance and maintenance expenses are making the numbers harder to stack up.
Recent lending figures confirm the trend. ABS data shows investor loan commitments fell 5.3% and first-home buyer loans fell 4.3% in the March quarter 2026.
What the “quitters” are doing instead
Stepping back from the traditional property path doesn't mean giving up on it. Many Australians are using a different approach, taking time to strengthen their position before making a move.
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Improving borrowing power first
A pullback in lending doesn't necessarily mean buyers have given up. It may just mean they are getting their finances in order first.
Paying down credit card debt, reducing unused credit limits, clearing personal loans and building a consistent savings history can all improve borrowing capacity over time. For buyers who were close to approval but not quite there, this kind of groundwork can make a meaningful difference when they enter the market.
For example, someone earning $90,000 with $30,000 in living expenses could borrow $47,000 more simply by clearing and closing a $10,000 credit card, without earning a single dollar more.
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Growing their deposit differently
Others are putting their savings to work rather than leaving them sitting in a bank account. The ASX's 2023 Australian Investor Study found that 51% of Australian adults held investments other than their home and superannuation, up from 46% in 2020.
For those saving toward a deposit, putting money into ETFs or shares rather than a standard savings account can help the deposit grow faster, though it is a higher-risk strategy. For buyers with a longer runway, it's a way to make savings work harder in the meantime.
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Finding another way onto the ladder
For some buyers, the answer is changing where they buy. Purchasing in a more affordable market while continuing to rent in a preferred location, known as rentvesting, has gained traction as a way to get a foothold in property if you can’t yet afford the suburb you want to live in.
Choosing to buy in a more affordable area, such as a regional location where properties can be hundreds of thousands of dollars cheaper than a capital city, or one with a higher rental yield, can offer a way into the market that staying local cannot.
Could a cooler market change the equation?
Cotality auction data shows capital city clearance rates have fallen to a six-year low, with fewer than half of homes (49.2%) selling under the hammer, the lowest since 2020. At the same time as more Australians are stepping back from property plans, conditions may be shifting for those who are ready to act.
Lower clearance rates can create negotiating opportunities, especially when properties pass in or auctions are withdrawn. Sellers are under pressure and there may be more private sale opportunities than buyers have seen in recent years.
But a cooler market does not automatically mean property is affordable. Higher rates have reduced borrowing capacity, repayments remain elevated and further rate rises are still a risk. It may create opportunities, but buyers still need finance ready before they can take advantage of them.
What to do if you're ready to make your move
If you've decided it's time to buy a property, the first step is knowing your numbers. That means understanding how much you may be able to borrow, what repayments would look like at today’s rates and how much room you have if rates move again.
Home loan pre-approval can give you a clearer figure to work with, making it easier to focus your property search and move quickly when the right place comes up.
