The Unaffordability of Homeownership in Australia
Homeownership, once central to the Australian Dream, is increasingly out of reach—especially for younger generations. Property prices in major cities like Sydney and Melbourne have soared, with Sydney’s median house price rising from $400,000 in 2000 to over $1.1 million today. This growth has far outpaced wages, which have increased only 1.5% annually since 2013, leaving many unable to save deposits or service mortgages.

Several factors drive this crisis: high demand, limited housing supply, investor activity, and historically low interest rates that encouraged larger loans. Foreign investment has also added pressure in metropolitan markets. The result is that many first-home buyers are priced out, while those who can purchase often rely on parental help, buy in outer suburbs, or delay ownership.

Younger Australians face added challenges from student debt, insecure gig-economy work, and high living costs. Many are renting longer, staying with parents, or moving to more affordable regions. This shift carries social consequences, threatening financial security and intergenerational equity.

Addressing affordability requires multifaceted reforms—boosting housing supply, lifting wage growth, and rethinking tax policies. Without structural change, homeownership will increasingly become an impossible dream, widening inequality and reshaping Australian society.
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