New research shows growing demand for green lending and shifting deposit strategies among younger buyers
Australian homebuyers are placing greater weight on climate resilience and long-term running costs when making property decisions, with new research revealing strong demand for homes already equipped with renewable energy features.
Great Southern Bank's latest No Place Like Home report found that 85% of Australians would prefer to purchase a home with existing renewable energy and energy efficiency technology installed. More than a third (35%) are concerned about how climate-related risks — including floods, bushfires, and rising insurance costs — could affect their property's value over the next decade.
Energy-efficient appliances and solar panels are currently the most common upgrades in Australian homes, with battery storage expected to become the most popular addition over the next five years.
"Australians are increasingly thinking about the total cost of owning a home — not just buying one," said Rolf Stromsoe (pictured right), chief customer officer at Great Southern Bank. "This growing interest is translating into demand for green lending. Great Southern Bank has seen this firsthand with its green lending portfolio doubling over the past year."
The bank's data also points to a generational shift in deposit behaviour. Younger Australians are entering the market with larger deposits than previous generations: Gen Z buyers are most likely to put down between 11% and 15%, Millennials between 16% and 20%, compared with Baby Boomers' typical 5% to 10%.
Maddie Walton (pictured right), a broker at Money Lounge, said first-home buyers are approaching the market with greater financial awareness than before, researching government initiatives and making deliberate choices about deposit size rather than defaulting to the traditional 20% benchmark.
"A deposit of around 10% to 15% is becoming increasingly common among the younger buyers I work with," Walton said. "For some, putting down a larger deposit can help bring repayments more in line with their lifestyle, improve their borrowing options and give them a greater financial buffer from day one."
Despite larger upfront commitments and longer savings timelines, repayment confidence remains broadly positive. More than half of mortgage holders (54%) feel fairly or very confident they will clear their home loan within its original term, according to Great Southern Bank's research.
Walton said confidence levels vary depending on where a borrower sits in their homeownership journey rather than purely by age. "For a Gen Z or Millennial buying their first home, they're right at the beginning of that journey and taking on what is often the biggest financial commitment they've ever made," she noted. "Showing clients how additional repayments or refinancing can shorten a loan's life is often key to building long-term confidence."
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