From renting to owning: What young Canberrans think about home ownership in 2025

Twenty-five years ago, young Canberrans had every right to be optimistic about their future in the property market.

Home loan interest rates had dropped dramatically since the heady days of the mid-1990s, Canberra’s median house price was just $191,854, the median unit price was $144,234, and, nationally, 43 per cent of 25 to 29-year-olds already owned their own home.

While Canberra was in fact the most expensive capital city in which to rent – the average cost to rent a house was $580, ahead of Sydney at $540 – many young adults couldn’t wait to leave home and move in with some mates to share the costs, the chores and the good times, the first step towards independence.

In 2025, it’s a different picture. Rising house prices, slow wage growth and the increasing cost of living seem to have put an entire generation on the back foot.

According to the Australian Bureau of Statistics’ 2021 census, only 36 per cent of 25 to 29-year-olds now own their own home.

The national median house price has recently surpassed $1 million for the first time. In Canberra, it is $1,069,751, while the median unit price is $610,752.

The average rent is now $700 for a house and $575 for a unit.

Is home ownership out of the reach of young people? As Allhomes turns 25, we speak to some Canberrans who are the same age about their property hopes and dreams.

Sam Taylor is a born-and-bred Canberran who grew up in Florey, near the family’s real estate business.

He bought a three-bedroom Macquarie townhouse off the plan near the Jamison shopping precinct in 2021. He currently lives there with his dog Herbie and “a couple of amazing housemates”.

The third-generation agent, who works for Marq Property, says that, from a young age, he was drawn to property shows like The Block and Grand Designs, and he was always interested when his parents would “talk shop” at home.

“Real estate is definitely in the blood,” he says. “Combining a passion for property with an enjoyment of communicating, a career in real estate just made sense.”

Has his career given him any special insights into the market?

“It’s extremely tough with rising living costs, and the gap between wages and property prices means most young people could manage a mortgage with housemates, but saving a deposit is the biggest hurdle and often takes years,” Taylor says.

“The Canberra market is solid, with its long-term stability and steady growth, backed by a strong workforce.

“While affordability is a challenge for most, especially for single-income earners, it’s hard to say the market is overpriced, as demand continues to support current values.”

Taylor has a pipe dream of one day buying land on Girrahween Street and building a home opposite Haig Park.

“Wouldn’t that be great? Close to my family and all the dining options on Lonsdale Street!” he says.

But he believes there’s still plenty of time for that.

“When you’re young and trying to save, it often comes down to choosing between building wealth through property or spending that money on travel and life experiences,” Taylor says. “The property market will always be there, but your youth won’t.”

Brianna Meddemmen and Dylan Phillips are renting a two-bedroom, two-bathroom unit in Denman Prospect. Their rent is $650 a week.

Meddemmen works in marketing for a small private agency, while Phillips is a public servant with Services Australia.

They moved in in November 2024 after living “at home” together for almost two years.

“There’s a self-contained granny flat at my parents’ house which we rented for about a year,” Meddemmen says.

“Then we switched to Dylan’s parents’ house, where we rented a big room which [accommodated] our bed, a TV and a couch. We lived there for about nine months before we moved in here.”

They love their home; it’s modern and spacious with a large balcony for when friends come over.

But they’re not looking to buy just yet.

“We may move away from Canberra soon, so home ownership’s on the back burner for the time being,” Phillips says. “I would love to live in a bigger city.

“I love the idea of a walkable city where you don’t need a car for most things. A home with a backyard somewhere near the beach would be the dream, but that feels a little unreachable these days.”

They say it’s a pretty even split in their friendship group between those who have bought their own homes and those who are renting. It all comes down to priorities.

“We’re just keen to experience a different city at this stage,” Meddemmen says.

“I do expect my perspective will shift in the coming years, and I’ll be craving a place I can call my own.”

She says they’re grateful they’ve been able to pay lower rents during the years they spent living with their parents.

“Our savings probably wouldn’t be the same without those opportunities,” Meddemmen says.

However, home ownership isn’t “completely unreachable”, Phillips adds. “We’re renting but still saving a decent amount of money each fortnight,” he says.

“It does get harder when hobbies and other things limit the saving, but if you have the right mindset, and you’re working full-time, it is possible.”

Someone once told Connor Schroder that his first house purchase would be the hardest.

“It stuck with me, and when it seemed like I was never going to get into the market, I would just keep telling myself that,” he says. “I just tried to remain positive.”

Schroder’s played something of a long game. He moved out of home in his early 20s and rented with friends for a little over a year before moving back home with the goal of saving for his first property.

“Some days, being on a single wage made it seem like I was never going to get into the market,” he says.

“It took a lot of sacrifice, and I missed out on a lot of things, trying to stay on track and save for so many years before I could even start thinking about buying.

“There were a lot of defeating moments, but I just had to stick it through.”

Schroder didn’t want to rush anything, did his research, and kept an eye on interest rates and the property market.

His perseverance paid off. In July, he moved into his first home in Giralang.

“Given how crazy the housing market has become, I am just grateful to be able to purchase my first property,” Schroder says.

“How can you know what might happen in the future, and how much harder it could possibly get for first-home buyers?”

Schroder is the co-owner of Advanced Interiors, a firm that covers a broad range of trade skills from electrical to renovations.

“Being a tradie, I wasn’t too fussed about the state of the house as I preferred to get something that needed a lot of work in the hopes that I could get it a bit cheaper,” he says.

“But since the market had gone up so much, even buying a rundown house is so expensive. After a lot of years of saving and searching, I found a perfect starting point in Giralang.”