Australians make the biggest sacrifices globally to own a home, Cotality study finds

New research finds 75% of Australians are willing to cut lifestyle spending to afford a home.

Three-in-four Australian buyers are willing to cut lifestyle spending to afford a home as expectations build for a rate rise, according to new research from global property intelligence company Cotality.

Cotality’s new Consumer Sentiment Report reveals a significant shift in purchasing behaviour across Australia, New Zealand, the US, Canada, and the UK, driven primarily by affordability concerns. Among Australian buyers, the findings reflect a particular affordability gap that has been widening for years.

Australia's buyers are stretching furthest to make homeownership work

Australian buyers are one of the most willing of any market surveyed to cut lifestyle spending - 75% have already done so or plan to. Buyers are also restructuring how they buy, with 57% of Australian respondents open to purchasing a smaller home to improve affordability (compared with 59% globally). Nearly two-thirds (63%) would take out a smaller mortgage (65% globally), and 58% would pursue a no-cost or smaller refinance to reduce their debt (57% globally).

New Zealand buyers show a similar willingness to adapt, leading all markets on willingness to take a smaller mortgage (68%) and closely matching Australia on lifestyle cuts (78%). Together, the two markets stand apart from the rest of the survey in just how much buyers are prepared to compromise to get a deal done.

"Australian and New Zealand buyers are making some of the biggest compromises of any market surveyed. They’re cutting spending, buying smaller, and restructuring their mortgages just to get into the market," said Lisa Jennings, Chief Commercial Officer at Cotality. "Affordability pressures are having a fundamental impact on what buyers are willing to compromise on to get into their own home.

“The dream of homeownership hasn't dimmed, but getting there now requires more compromise and careful financial planning than it has in previous cycles,” said Jennings. “As Australians continue to navigate a challenging affordability environment, the next phase of demand may depend less on when rates fall, but more on how well buyers have adapted to the conditions we’re seeing today.”

To read the full report, visit here.

About The Report

The Cotality Consumer Sentiment Report is a research series examining how homebuyers in five markets - the United States, Canada, the United Kingdom, Australia, and New Zealand - are adapting to the cost of homeownership in 2026. The series is based on a Q2 2026 survey of buyers, supplemented by Cotality's proprietary data sets.