["Australian Economic Review, EarlyView. ", "\nABSTRACT\n\nResearch Questions\nHow does temporary employment, that is, fixed‐term contract and casual employment, affect the transition into first‐time homeownership among young people in Australia? Does the effect differ by employment type, gender, relationship situation, or parents' socio‐economic status?\n\n\nResearch Findings\nBoth fixed‐term and casual contracts are associated with a reduced likelihood of entering homeownership; however, the association is significantly stronger for casual contracts. Associations are also significantly stronger among unpartnered people and (in the case of casual work) among men. By contrast, there are no differences by parental socio‐economic status.\n\n\nPolicy Implications\nThe employment and income insecurity associated with temporary contracts in combination with high house prices are a significant contributor to young people's low homeownership rates. Policies fostering transitions into permanent employment besides measures supporting first‐time homebuyers, increasing housing supply and strengthening renters' rights could help improve the housing situation of young workers.\n\n\nMethods\nThe study used longitudinal data from 12,689 individuals aged 18–39 who were interviewed in the Household, Income and Labour Dynamics in Australia (HILDA) Survey, covering the period 2001–2023. Discrete‐time event history models were estimated that investigate the effect of contract type and various socio‐demographic characteristics on entering homeownership in the following year.\n"]