Rentvesting is gaining momentum again as first-home buyers look for creative ways to enter the market.

Rather than purchasing in expensive areas, many are buying where they can afford and renting where they want to live, making this an appealing strategy for residential property investors.

Westpac’s latest Home Ownership Report reveals that 54% of first-home buyers are considering rentvesting for their first property.

The data also shows a growing investment mindset, with a 4% increase in Australians planning to purchase an investment property in 2025. Affordability concerns are driving buyers to expand their options.

According to the report, 82% of potential buyers are widening their property search, considering locations they hadn’t previously thought about just to secure a foothold in the market sooner.

Westpac senior economist Matthew Hassan notes that affordability issues and supply shortages are pushing first-time buyers towards rentvesting as a practical alternative.

He explains that this strategy allows buyers to manage financial risks while maintaining their preferred lifestyle.

The shift in buyer preferences is also reflected in the type of properties being purchased.

Over the past year, the demand for apartments and units has increased by 7%, while the preference for townhouses has doubled.

With more Australians adopting this approach, rentvesting continues to present strong opportunities for investors looking to build wealth through property while capitalising on rental demand in desirable locations.