New research from ING has revealed that Australians are increasingly considering purchasing property with a friend as a way to combat rising housing prices.

According to the research, almost half (47%) of Aussies who have purchased, or are considering purchasing a property with someone who is not a spouse or partner, say they’d consider becoming 'Property Pals' with a friend, equating to 3.5 million Australians.

The trend is particularly prevalent amongst Generation Z, with 53% open to buying a property with their best friend, and 62% believing that purchasing a home with a friend will become a common practice if house prices continue to rise.

The research found that 19% of Australians believe buying with a friend will allow them to purchase a larger home than they could on their own, and 22% believe it is a more sustainable and environmentally friendly option than living alone. Additionally, 32% of Australians would consider becoming a Property Pal to start building a property portfolio.

27% of Australians would consider buying a property with a friend if the property was a holiday home. Half of Australians who wouldn't normally consider becoming a Property Pal would be open to it if they were supported by a financial institution.

"Property prices have been on an upward trajectory for some time now and the costs of living are proving a real sting for many. But despite this, the great Australian dream of homeownership is not dead – it’s just different. As this research has shown, young Australians are being smart about how they reach their property goals by exploring the Property Pals concept," said Head of Daily Banking at ING Australia, Matt Bowen.

"While you may reach your property goal quicker than doing it on your own, as with any investment it’s important to consider the risks. There are a few things we’d encourage anyone to consider before purchasing with a friend. Make sure you seek legal and financial advice about ownership options before entering any financial commitment. You should also formalise the mechanics for future possibilities – for example, what will happen if one of you wants to sell? Do your research about your mortgage options and be aware that you’re both accountable for repaying the loan. If one person can’t make their repayments, the other may need to chip in. Talk to your broker or talk to your bank to make sure you’re going into it with a good plan for a successful outcome."

The research was conducted online by YouGov between 26-29 February 2024 with a nationally representative sample of 1,081 Australians aged 18 years and older.