In a recent poll conducted by both Mortgage and Finance Association of Australia and Commonwealth bank-owned Bankwest Retail, majority of young Australians fall under the category of lifelong renters instead of real estate owners.

With so many current homeowners owning large amount of debts on mortgage and home purchasing, it triggered more than half of the Generation Y members to succumb themselves into renting to avoid suffering the same fate.

The data released by both survey groups said results of the April poll increased up to 10 per cent. The same survey was carried out last November.

Victoria Shortt, chief executive of Bankwest Retial was overwhelmed by the results.

"We have never seen such pessimism amongst prospective first time buyers throughout the past five indexes," she said.

"Seventy per cent of respondents were very concerned about the level of debt they will be committed to if they buy a property."

Majority of the respondents who were born between 1980 and 1990s said they will refrain from owning a real estate permanently amid a 12.7 per cent increase in home prices in February.

According to Fujitsu Consulting calculations, the average income-to-loan size ration multiplied to six times, compared to 3.5 times in 1998.

However, Jason Anderson, senior economist at BIS Shrapnel is optimistic that first-home buyers will recover in the middle of the year.

''The rental market remains very tight and there are still many potential first-home buyers who will seek to move out of the family home," he said.

A total of 900 responses of the poll came from existing home owners and prospective buyers.