The Reserve Bank's announcement on interest rates is unlikely to gain much attention from tens of thousands of Australians, particularly those who are members of Generation Y.

New analysis from Roy Morgan Research shows fewer people under the age of 30 have mortgages.

Instead, the majority of people between the ages of 18 to 29 are trying to keep up with paying their rent and spending what they have left on travelling overseas or entertainment.

Laurence Wainwright, 23, is a part-time teacher at UTS in Sydney.

"I think the goal is certainly becoming less and less realistic," he said.

"I think my generation is very scared of commitment, we're scared of being tied down, we're scared of being stuck in the nine to five rat race, and that's what you need to actually do in order to have a mortgage and actually have a place.

"From my perspective, I'm 23 and there's so much more I want to do before I go down the mediocre rat race of a nine to five job and 2.1 kids etcetera."

Roy Morgan Research points to the changing nature of Australia's housing market.

It shows the number of people aged between 18 and 29 who are renting has increased from 41 per cent in 1997, to 51 per cent in 2012.

Roy Morgan's CEO Michele Levine says the number of Baby Boomers who rent has also increased to 19 per cent.

"With the younger people, it's most likely to be the issue of housing affordability and the choices they're making to put off the time they take out mortgages and decide to have their own home," she said.

"Whereas I think if you look at the older age group, it's much more likely to be a function of families breaking up, and circumstances changing."

As car affordability has increased and interest rates have been low, young people are also buying new cars.

The drivers of new cars aged 18 to 29 has increased from 10 per cent in 1997 to 15 per cent in 2012.

The analysis also shows the number of people in the 18 to 29 age group who have travelled overseas in the last 12 months has increased from 10 per cent in 1997, to 12 per cent in 2002 and to 15 per cent last year.

"Certainly from my perspective, I like the idea of being able to leave, to go overseas, and I certainly think in my line of work which is very much based on contracts, on short term contracts, a bank would probably look at me and say we're not going to give you a mortgage because you haven't got a secure nine to five job," Laurence says.

Parents helping out

Kevin Sheehan, 62, is a commercial real estate agent in Melbourne, and his 25-year-old son lives at home while studying.

"Certainly I feel very sympathetic to the younger generation coming through, because they're going to have to have a greater multiple of their earnings to even get on the home ownership scale," he said.

Michele Levine says the housing landscape is adjusting to the new reality of higher prices.

She says many Baby Boomers are helping their children to get into the property market.

"Many Baby Boomers, people in that age group, are actually taking out second mortgages for buying another property, or second mortgages to help get their kids started," she said.

Australian Housing and Urban Research Institute executive director Ian Winter says the notion of what it means to be renting is changing quickly.

"We used to think that private renting was simply a stepping stone through to home ownership, but increasingly for at least a third of households in the private rental market, we know they're going to be long-term renters," he said.

Dr Winter says now the problem is that the rental market is so competitive, people on lower incomes are struggling to find places to live.

"Lots of these households on higher incomes are sitting in the private rental market, trying to maximise their savings so that they can get into home ownership," he said.

"But that means they're squeezing out lower income households in the private rental market.

"So we know that while there is quite a deal of affordable stock in the property rental market, in somewhere like Sydney, only one in 15 low rent dwellings is actually occupied by a lower income household.

"So there's a real problem squeezing lower income households out of the private rental market, which is causing significant problems for housing affordability amongst lower income households.

"If we look just at lower income tenants in the private rental market, 50 per cent of them are in housing affordability stress, now that means they're paying so much on their housing that they don't have enough left for life's basics."

Dr Winter says there have been successful schemes from governments for lower income households.

"There are incentives to provide 50,000 dwellings into the private rental market, that's a very important initiative of this current Federal Government, they're delivering this in collaboration with state and territory governments, but that really needs to continue and for the number of incentives to increase," he said.