Generation Y? More like Generation "property orphans", says a New Zealand data analytics company.
Generation Y - defined as young Kiwis under 28 - appear to have given up on home ownership, with fewer applying for mortgages than in previous years, new data from Veda shows.
And Veda's managing director John Roberts says some young Kiwis may be destined to be renters for life, which will have an impact on their savings for years to come.
But young Kiwis are still borrowing - they're just getting personal loans or credit cards.
Mr Roberts says Gen Y may not be able to save the 20 per cent deposit required under the new Loan to Value Ratio (LVR) restrictions introduced last year.
They're also being affected by rises in the official cash rate, which have flowed through to interest rates on mortgages, and the booming prices in Auckland's property market, he says.
"It looks like Gen Y is seeking to borrow for purchase on consumer items or travel, and has given up, at least for the meantime, a desire for home ownership which may appear unattainable," Mr Roberts said.
Gen Y could follow a similar pattern to the baby boomers, whose consumer spending was fuelled by unsecured borrowing before the 1987 downturn, he said.
The Reserve Bank said earlier this month that the restrictions and interest rate hikes had helped slow the pace of the house price increases.
YOUNG BUYERS - THE FACTS
* Mortgage inquiries across all age groups down by 30 per cent in August compared with August 2013
* Mortgage inquiries from Gen Y down by 32 per cent in June to August compared with same period last year
* Credit card inquiries from Gen Y increased by 20 per cent in August quarter compared with same period last year
* Mortgage inquiries have been decreasing for the 11 months leading up to August 31.
Source: Veda
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