Latest national data from Finder’s Home Loan Report has reported two-thirds of Gen Z home buyers received some form of family help getting onto the property ladder. For Baby Boomers, the figure was 11%.
The wealth gap has become a popular topic for discussion recently. Data from ACOSS/UNSW Sydney Poverty and Inequality Partnership shows that “wealth inequality has increased across generations since 2003, particularly in the distribution of owner-occupied homes held across all age groups.
How Home Ownership Has Changed Over Generations
Home ownership among people aged 25-29 fell from 44% to 38% and aged 30-34 fell to 50% from 57%. On top of that, the proportion of household income required to service mortgages rose from 27% to 41%.
Rising property prices have also made saving for a deposit take longer than ever. Couples take almost 7 years to save a 20% deposit for an entry-level house in Sydney (~$1.15m) with singles taking 13 years, according to Domain data. Before 2000, it took an average of 4-5 years.
So entering the market is tough, servicing it is expensive, but at least it’s all worth it long-term, right? Not exactly.
The ACOSS/UNSW research tracked the average value held in property for homeowners under 35 years:
- 32% in 2003
- 26% in 2021
For those 35-44:
- 82% in 2003
- 69% in 2021
For those 65 and above:
- 140% in 2003
- 144% in 2021
The top 10% of households (by wealth) have “an average of $6.1 million or 46% of all wealth,” according to the partnership. The next 30% sits at an average of $1.7 million or 38%, while the remaining 60% of the population has an average of just $376,000 or 17% of all wealth.
Where the Bank of Mum and Dad Fits
This data suggests that the Bank of Mum and Dad is mostly available to those in the top 40% of households. ABS statistics show that 1.8 million of the 6.2 million households are reliant on family assistance in some capacity (29%).
It’s extremely clear along generational lines. Only 33% of Gen Z homeowners bought without family help. Millennials sit at 46% while 89% of Baby Boomers bought without outside help.
The most common form of assistance for Gen Z are family members buying the property outright (24%), covering the deposit (19%), or acting as guarantor (19%).
The report’s own author, Richard Witten, said that parental help “can cut years off the journey to homeownership and put them well ahead financially from the start.”
Essentially, well-off parents are more likely to have well-off children by giving them the advantage of home ownership and therefore equity before others.
The uncomfortable truth is that the Bank of Mum and Dad is a symptom of a growing wealth gap between generations. Parents want to give their kids the best chance at life and so can’t be blamed, but 60% of parents can’t help their children buy a house with an average net worth of $376,000.
What Can You Do?
Things are difficult without family backing, but it’s not hopeless. Government incentives and schemes are the primary way you can get into the property market.
The First Home Guarantee, now also called the Australian Government 5% Deposit Scheme, lets eligible first home buyers purchase with a 5% deposit and no Lenders Mortgage Insurance. Housing Australia guarantees up to 15% of the property value to your lender, which is what removes the LMI cost (typically a saving of $10,000 to $35,000). Since 1 October 2025 there are no income caps and no limit on places. Property price caps still apply and vary by location.
Help to Buy is a shared equity scheme, which works differently. The government co-purchases part of your home (up to 30% of an existing property or 40% of a new build) in exchange for an equivalent equity share. You can enter with as little as a 2% deposit and pay no LMI, but income caps and property price caps apply, places are limited, and only a small number of lenders participate. Because the government holds a share, you repay that share when you sell or buy them out, and it rises and falls with the property’s value.
It isn’t game over without family backing. Get in touch with It’s Simple today to explore your options and the likely path to homeownership for you. Don’t do it all yourself, get a team of experts in your corner.
This article contains general information only. It does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for your circumstances and seek professional advice before acting on it. Eligibility criteria, income limits and property price caps for government schemes change — confirm current details with Housing Australia or your broker before relying on them.