New data from a customer-owned bank has revealed buyers are rushing to purchase homes as prices rise and supply dwindles.
A new survey from mutual lender Great Southern Bank (GSB), conducted from 24 September to 1 October 2025, has found that while aspiring home owners remain determined to buy property, they are facing mounting barriers sharpened by affordability issues.
In a survey of 2,015 Australians, nearly half of all respondents (46 per cent) nominated surging property prices/feeling priced out as the biggest obstacle to buying a home.
Women were more concerned about being priced out than men (50 per cent versus 42 per cent), and older home buyers were also more worried about being priced out.
More than half of Baby Boomers (those born between 1946 and 1964) said rising house prices were the main barrier to home buying, followed by Millennials (those born between 1981 and 1996) at 48 per cent.
Gen X (those born between 1965 and 1980) and Gen Z (born between 1997 and 2012) also cited prices as the biggest barrier, but in smaller proportions (44 per cent and 41 per cent, respectively).
The concerns come after house prices rose by 8.6 per cent in 2025 (8.2 per cent in the capitals), according to Cotality, the largest annual increase since the pandemic highs of 2021.
After pricing, saving for a deposit was found to be a key hurdle (41 per cent), particularly among Millennials (46 per cent) who are juggling high rents and living costs.
Women were again more concerned about the deposit hurdle than men (43 per cent versus 40 per cent), with the younger generations also more worried about it than their older counterparts.
Supply was also a top barrier to home ownership, the GSB survey found, with more than a quarter of respondents (27 per cent) stating there were not enough suitable properties for sale.
Women (29 per cent) and Baby Boomers (30 per cent) were among the most worried about supply in achieving home ownership.
Sense of urgency reshapes demand
The survey highlighted a pronounced ‘now or never’ mood among would-be buyers. Around two-fifths (40 per cent) said they wanted to buy a home before prices rose further.
Meanwhile, just over a third of participants (34 per cent) said they felt pressured to buy, while interest rates remained relatively low (34 per cent) amid fears of looming rate hikes.
Men (36 per cent) and Gen Z (44 per cent) were the top groups feeling the pressure, the survey found.
Speaking to The Adviser, a Great Southern Bank spokesperson said: “Nearly half of Australians believe that rising house prices are their biggest barrier to buying a home. And with more than one in four Australians also saying there aren’t enough homes available to buy, it’s clear the pressure is coming from multiple directions.
“Despite this, we’re also seeing a strong sense of urgency, with around a third of Australians wanting to buy while they believe interest rates are lower, and 40 per cent concerned prices will continue to rise.
“That’s why it’s important buyers feel prepared before they start seriously looking.
“Understanding their budget, exploring loan options early and having a clear picture of affordability, can help take some of the stress out of the process.”
5% Deposit Scheme ups the stakes
GSB’s survey comes as property prices rise amid a supply-demand imbalance.
While dwelling approvals have increased in recent months (largely due to apartment approvals), supply has been hampered by a backlog of activity, rising construction costs, and delays in housing completions.
To help address this, the government has pledged $10 billion over eight years to support states, territories, and industry to deliver up to 100,000 new, well‑located dwellings for sale to first home buyers.
However, government initiatives aimed at boosting demand have also been bringing forward demand.
The expanded 5 per cent Deposit Scheme has been found to be placing price pressure at lower ends of the market, where first home buyers typically compete.
According to recent data from property analytics company Cotality, homes that fell within the Deposit Scheme caps grew by 3.6 per cent, compared with 2.4 per cent growth for homes above the caps.
The government also recently launched the Help to Buy scheme to support low- to middle-income earners in entering the property market.
[Related: Investor surge fuelled national home price boom in 2025: NAB]
