Young Australians have been the worst hit in the current housing crisis, with 70 per cent believing that they will never be able to buy their own home, according to a report by Resolve Strategic.
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According to research by the Australian Bureau of Statistics (ABS), the average house prices in Sydney and Melbourne have skyrocketed by 150 per cent and 140 per cent respectively over the past decade.
The ABS reports that the homeownership rate for individuals aged 25-34 has fallen from 61 per cent in 1981 to a mere 36 per cent in 2016. Furthermore, the proportion of income spent on housing by low-income households has surged from 20 per cent to 27 per cent between 2007 and 2018, making it increasingly difficult to save for a home deposit.
According to the Grattan Institute, in 1981 it took the average Australian household just five years to save for a 20 per cent home deposit, while today it takes closer to a decade. For young people, this has transformed property attainment into a privilege reserved for those who inherit rather than those seeking independent purchase.
The ABS reveals that the number of Australians experiencing homelessness has risen by 14 per cent since the 2016 Census, with the lack of affordable housing named as a significant contributing factor, with only one per cent of rental properties in Sydney and Melbourne affordable for those on a minimum wage.
Resolve director, Jim Read said young people believe they will never own their own home.
“My researchers in this area tell me that many young people have simply given up on the dream of owning a home, at least in their early careers, and some are even telling me that they are giving up on having a family because they can’t afford to look after themselves, let alone more mouths,” he said.
Additional reporting: Christy Koufos and Andie Robinson