Gen Y and Z rewrite the property rulebook as rent-vesting goes mainstream

Reventon says savvy young Aussies are choosing investment properties first – and it’s reshaping the housing market.

Is rent-vesting the way up for budding property investors? Pic via Getty Images

• Reventon says rent-vesting is now a mainstream strategy, not a fringe trend

• Gen Y and Z buyers are prioritising capital growth and lifestyle flexibility

• Affordability constraints in major cities are driving this shift in buyer behaviour

Special Report: For generations, home ownership in your own postcode – backyard, barbecue, Hills Hoist and all – was the defining milestone of adulthood. But the new generation of property buyers has other ideas.

According to national property group Reventon, Millennials (Gen Y) and Gen Z buyers are approaching the market differently and for good reason. Confronted by staggering property prices in major cities, they’re choosing to rent where they want to live and buy where they can afford.

This growing cohort, known as “rent-vestors” is flipping the script on homeownership. They are renting in desirable, lifestyle-rich suburbs like Sydney’s Inner West or Melbourne’s Fitzroy, while investing in high-growth, affordable suburbs across regional Australia and outer metropolitan belts.

“This isn’t about giving up on the dream of home ownership,” says Chris Christofi, CEO at Reventon. “It’s about a smarter path to achieving it”.

Lifestyle, logic and a changing market

Christofi says a mix of lifestyle preferences and hard market realities drives the shift to rent-vesting.

“For young buyers, living in the area they love often means facing a million-dollar-plus mortgage,” he explains. “Renting in these areas still comes with a cost, but it’s usually less than owning and gives them flexibility.”

That flexibility matters. Gen Y and Z place high value on proximity to jobs, social networks and urban amenities. Renting allows them to live well without compromising financial goals.

At the same time, they’re putting their money to work elsewhere – buying investment properties in outer suburbs or regional centres where prices are lower but capital growth prospects remain strong.

Strategic wealth building on their own terms

Far from being a stopgap, rent-vesting is becoming a wealth-building strategy in its own right.

By purchasing in more affordable locations, buyers can enter the market sooner, build equity, and benefit from rental income and tax deductions – all while avoiding the lifestyle sacrifice of relocating to a distant suburb they don’t actually want to live in.

“It’s about control and long-term thinking,” Christofi says. “They’re playing the long game, growing their portfolio while maintaining their lifestyle.”

Importantly, these rent-vestors aren’t emotionally tied to their investment properties. For them, the purchase is a means to build capital, not a forever home. That clarity allows them to make purely financial decisions based on market trends, rental yields and future growth corridors.

From fringe to fundamental

Reventon says what was once seen as a fringe or fallback strategy has become a fundamental shift in how young Australians engage with property.

They’re investing with purpose – using data, targeting suburbs with future infrastructure growth, and leveraging financing options tailored for investors. Some even plan to use future equity to fund the eventual purchase of an owner-occupied home – on their terms.

“There’s a misconception that young people are priced out forever,” Christofi says. “But what we’re seeing is a new level of financial maturity. They’re adapting. They’re strategic. And they’re building wealth without waiting for permission.”

Reinventing the dream and owning the outcome

The rise of the rent-vestor is a clear signal that Australia’s property narrative is evolving. While the suburbs and the strategy may look different, the end goal remains the same: security, stability and the chance to build something of value.

Through rent-vesting, Gen Y and Gen Z aren’t walking away from that dream – they’re just finding smarter ways to make it happen.

This article was developed in collaboration with Reventon, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Gen Y and Z rewrite the property rulebook as rent-vesting goes mainstream