For generations, the Great Australian Dream – owning a fully paid-off home by retirement – stood as a defining life goal for working people across the country. Once widely achievable for most households, this long-held ambition has grown increasingly out of reach for younger generations today, driven by a toxic mix of skyrocketing property values and a shifting cultural attitude toward consumption and instant access that financial experts have dubbed the “Netflix effect.”
Unlike the structural economic pressure of housing costs that have outstripped real wage growth for decades, the Netflix effect describes a broader cultural shift away from delayed gratification, a core value that allowed previous generations to slowly build wealth and save for a down payment on a home. Today’s young people, raised in an on-demand economy defined by streaming services like Netflix, ride-hailing apps such as Uber, and constant instant digital access, have grown accustomed to getting what they want immediately – a mindset that financial industry leaders argue is spilling over into long-term financial planning.
Adelaide-based mortgage expert Marissa Schulze, founder of High Rise Financial Solutions, explains that the generational gap in expectation traces directly to this cultural shift. “When older generations were growing up, they had to wait for things – whether that was waiting until next week for the next episode of their favourite sitcom. They come to learn that good things come to those who wait,” Schulze said. “But nowadays, people are so much more use to having things now and at their convenience, through things like Uber and Netflix.”
This constant access to instant satisfaction, she added, has eroded young people’s intuitive understanding of the value of long-term saving, making it far harder for many to set aside the funds needed for a property down payment. Even so, Schulze stressed that the Australian dream is not dead – just harder to reach than it was for previous generations. “It certainly is a lot harder for young people to save for a deposit, that is the big part, but it is still possible,” she noted. “I think maybe young people as a result of changing ideas and values do perhaps have less realistic expectations for what they want in a first home and so are less prepared to have a home as a first step then trade up. But I do also think there is a greater need to be more disciplined about saving, and lots of young people are.”
That assessment is echoed by Sean Lee, director of Finance Quarter, who argues that the “want it now” mindset that defines modern culture comes with a tangible long-term cost. Lee points to social media as a key amplifier of this attitude, encouraging young people to take on debt for discretionary purchases ranging from new cars to international vacations just because they can qualify for borrowing. Small recurring costs, from multiple streaming subscriptions to monthly gym memberships, also add up over time, eating into funds that could otherwise go toward a housing deposit.
“Social media in particular has created a culture where we want things now – so people may borrow for a new car or a holiday just because they can,” Lee explained. “This type of lifestyle makes it far more difficult to save up for a deposit. Things like subscription services and gym memberships do not sound a lot, but it does all add up. We have a ‘want it now’ society, but that does come at a price.”
Like Schulze, Lee confirms that the dream remains achievable, but it looks different today than it did for older generations. It requires far more intentional financial planning, and is particularly challenging for single buyers, he said, adding that improved financial literacy education would go a long way to helping young people reach their goals. He also acknowledged that structural economic factors play a major role: in many parts of Australia, property prices have jumped 50% to 100% over just the past five years, a surge that average wage growth has nowhere near kept up with.
Veteran financial advisor Peter White of the Financial Brokers Association of Australia, who has worked with first-time home buyers for 47 years, said saving for a deposit has always been challenging, even for previous generations. The biggest difference today, he argues, is the soaring cost of everyday living that leaves less disposable income for saving. To make the dream work, modern first-time buyers must be willing to compromise on location and size, he said.
“It may be that you have to come to terms with not being able to buy in the same area as your mum and dad – you may have to move to a different suburb or something smaller,” White said. “Saving in the modern world is quite different to what it once was and it is a lot harder to do – and there’s always something that makes it harder. I do think we’ve become a bit more relaxed and prefer to have things the easy way than the hard.”
His top advice for aspiring homeowners? Set realistic expectations, start saving immediately, and be prepared to make short-term sacrifices, such as taking on extra work to build up funds. He also reminds buyers to account for extra closing costs that can add up to roughly 5% of a home’s purchase price on top of the down payment.
Ben Kingsley, managing director of Empower Wealth, echoes the call for adjusted expectations, emphasizing that younger buyers should not expect to purchase their ideal forever home as their first property. Instead, he encourages buyers to get on the property ladder with a more affordable entry-level home, then build equity to trade up to a larger or more desirable property later in life. That first step is particularly challenging for buyers who want to settle in major Australian capital cities, where prices have risen fastest, he noted.
“Getting that deposit is definitely getting harder and harder,” Kingsley said. “However, if you trade down your expectations, you also trade down the size of the deposit you need and then have your first step. What you are finding is that people are coming into home ownership later in life. A big question is whether there is any sense of delayed gratification nowadays? The truth is, if you want the dream to become a reality, you are going to have to be prepared to buckle down.”
