Each generation has had its own unique struggles with first-home ownership. But which has had it the worst? Experts say it has little to do with smashed avo.
We've all heard accusations that the young generations penchant for "too many lattes" and "smashed avo" leaves them unable to afford to buy their own home.
Professor Bryant said interest rates meant that mortgage repayments were extremely high, in some cases reaching as high 17 per cent."But at the same time, house prices were a lot lower," he said. The 25 to 39-year-old baby boomers in 1991 were three times more likely than the 25 to 39-year-old millennials in 2021 to own their home outright.Generation X was born after the baby boomers during a period with a drop in birth rates. They are aged between 40 to 57 years old in 2024.
"That would have been a big shock for that generation, because they would have been looking and saving to buy a house in the most rapid period of house price inflation," he said."Since World War II, all generations, and age cohorts within generations, have had lower levels of home ownership than older generations and age cohorts. But with gen X we started to see some more pronounced gaps appearing," he said.
But gen X paid the biggest proportion of their income on mortgage repayments compared with other generations. They've also experienced the current cost of living crisis at the same time many are looking to buy their first home.Professor Bryant said getting into the housing market and saving a deposit has been much harder for younger generations.
Gen Z is currently entering the housing market with the double challenge of high prices and higher interest rates. House price growth has continued, so unless things change home ownership may look like some kind of parental, or grand-parental support, he said.
Buying A House Generations Gen Z Gen X Millennials Wealth Interest Rates RBA Baby Boomers Property Market Gen Alpha Rent
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