Young home buyers haven't given up on getting into their first home.
However according to new research that is increasingly expected to be an apartment in a high-density area rather than a freestanding home in the suburbs.
Of first home buyers in the process of looking for their first property 41 per cent said they are extremely or very likely to buy in a high-density area according to research by McCrindle.
"As people start to realistically consider their home purchasing options, they are more likely to see high-density housing as a viable option," said Social Researcher at McCrindle Ashley Fell.
Before going into the buying process however, high-density living is not as aspirational.
The survey found that among those who aspire to own property at some point in the future, just 15 per surveyed said say they were extremely or very likely to purchase in a high-density area.
Changing face of housing
"I think the majority of people across generations aspire to a freestanding home," said Ms Fell.
"However there is a growing proportion of Australians who are open to owning an apartment to get into their own home."
She said that is a shift from what Australians have considered home in the past.
"The vision of Australia as a detached home nation is still there but slowly over time we are seeing that change," she said.
She said the move towards apartments also comes as people see the advantages of different housing types.
"In my experience, as time goes on, there is a appreciation of different ways of living."
Lifestyle on offer
High-density areas were also very attractive for younger home buyers with lifestyle factors, such as being close to cafes, train stations and facilities were important, along with price.
While apartments are still the cheaper option, their prices are on the rise.
Apartment prices are now rising faster than houses across most capital cities in Australia, according to CoreLogic.
"Most cities now have a median house value that is at least 1.5 times higher than the median unit value," said CoreLogic research director, Tim Lawless.
"With stretched housing affordability, lower borrowing capacity and a lift in both investor and first home buyer activity, its not surprising to see the unit sector outperforming for a change," Mr Lawless said.
Appeal to rent-vesters
Apartments are however most popular amongst so called "rent-vesters", that is people who do not own their own home but are buying an investment property as their first step into the property market.
The McCrindle survey found that 44 per cent of rent-vesters looking to buy an investment property are extremely or very likely to buy in a high density area.
"Rent-vestors are probably in that demographic and life stage where they want to get a foot on the property ladder," said Ms Fell.
"Apartments are a way they can enter the property market that is not as expensive as a freestanding home."
She said that apartments in high density areas also had many factors that renters were looking for including being close to transport and in areas with high liveabillity.
