Gen Y desire home ownership, even if it's for a lifetime of mortgage repayments

Despite the home affordability concerns, Gen Y has not given up on home ownership.

A survey of more than 2000 students across Australia between the ages of 17 and 29 found that 94% are thinking of  buying a property during the next five years or so.

They are also saving an average $150 a week to achieve their goal, according to The Future Leaders Index, commissioned by The Co-op Bookshop.

Women especially seek home ownership as of the women surveyed, 77% said it "was as important to them as it was to their parents" compared with 72% of men.

The home ownership aspiration is stronger in the younger demographic and regional against metropolitian.

The chief marketing officer at the Co-op, Greg Smith, said the findings indicated the the age group was "starting to evolve into Gen S - Generation Sensible."

"The findings clearly challenge the fairly commonly held populist view of Gen Y as living large, carefree and making lifestyle purchases over saving," he said.

The results also show tempered realism towards property ownership: with eight in 10 agree that because of the high cost of houses, many will  never own their own home outright - ie be mortgage free.

"This is a generation that is acutely aware of the major issues of unaffordability of housing going forward, but at the same time is clearly confident that even if they don’t ever own their own home, it’s still a good idea long term," Mr Smith said.

The fifth RAMS first home buyer survey, released over the weekend, indicated the profile of the typical first home buyer continued to evolve with about a third of first home buyers now more likely to be aged over 36.