To understand why 30-somethings feel like they're struggling financially, the ABC analysed five factors — housing, healthcare, debt, tax, and income. The data reveals this generation is caught in an economic perfect storm.
The cost-of-living crisis puts long-held dreams further out of reach. Data shows how this happened."It was still the quarter acre lot. The Hills hoist, that kind of paradigm," he says.
"I would love to have a child, but I don't think I could do it as one person with the costs of childcare and everything … which is quite sad," she says."The Australian dream is over. I think that's symbolic of a past time. I don't think the world's been like that since 2001." "The reality is that the cost of the loans was much smaller, because house prices were much lower, but also relative to what they were earning, it was much lower," Mr Jericho says.In 1990, the average mortgage was about three times the yearly wage for a 34-year-old. Now it's eight times.Young people are entering the market later due to higher property costs and repaying a loan is getting harder — particularly if they entered the market in 2021, when house prices peaked.
His small horticultural business based in Woy Woy on NSW's Central Coast has been thriving. After paying off staff wages and costs, he's managed to save up $70,000 with his partner for a house deposit. "We can't afford in our area, it has to be in the middle of nowhere — but my work's here. I'm stuck here because if I move my business and start over we won't be able to afford the mortgage repayments," he says."Life has never been cruisy for any generation. The early 1990s recession was well beyond anything that millennials have really had to deal with in their adult working life in terms of unemployment … but there was a recovery," says Mr Jericho.
While most age groups flatlined, older generations are often better cushioned due to having other sources of income, according to Grattan Institute research. Clementine feels like it's the costs that matter to her future most that keep going up. She'd started talks with a potential donor and researched foster care, but cost-of-living concerns have paused her motherhood plans.
"We keep hearing, 'Everything's great, the economy is growing,' but if your life isn't getting better, what's the purpose of all that growth?" Harry has continued to pay out of pocket to see psychiatric and psychology specialists for his developmental disability, but it's taking a toll. For 30-somethings who started studying in the 2000s, higher education is costing a lot more than their parents.
What bothers veterinarian Dr Anna Sri is that the politicians that have increased the burden of HECS repayments are mostly part of a generation who have never known what paying it feels like.The likelihood of a 30-something having a HECS debt hasn't changed since the 90s but when they'll be expected to start repaying it has. The cost of degrees has also become much higher, making HECS debts for 30-34 year-olds balloon by 10 times since 2001, according to HILDA survey data.
"Out of that $5 billion that is repaid every year. Most of that is repaid by people earning $60,000 to $90,000. We're not talking about uber rich people," he says. For Dr Sri, the cost of her investment in her study to be a vet is now hitting $93,000 and will keep increasing with indexation. When it comes to those in their 30s, Grattan Institute data shows that in 2016, 30-year-olds contributed twice as much to support older Australians' living standards than Boomers did at 30. And that's adjusted for inflation.
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