- Financial Advisory
- Credit Advisory
- Estate Planning
- SWU Online Invest
Aug 16 , 2021
A booming property market is set to see a generation of younger Australians priced out of the market, a shadow assistant minister has said, challenging the narrative that younger people are failing to buy property due to ‘laziness’.
In a recent interview with 2SM, shadow assistant minister for Treasury, Dr Andrew Leigh, highlighted the struggles younger people face when trying to get their foot into the housing market door.
Across the combined capitals, the average asking price for houses rose by 3.7 per cent to $1,044,400, as property owners responded to talk of a property boom driving prices north.
Zooming in on the capital cities, Sydney was propelled to first place following the highest monthly incline of 6.1 per cent to a median price of $1,497,400.
Following Sydney, albeit with a large gap, was Hobart with an increase of 2.2 per cent, then Melbourne with 1.6 per cent, and Adelaide and Darwin with an equal 0.6 per cent.
Brisbane, Perth and Canberra all saw house asking prices decline, with Canberra recording the largest fall of 2.4 per cent.
Commenting on the swelling house prices, Dr Leigh said the narrative around younger people trying to get into the housing market needs to change.
“Australia’s home ownership rate is now at a 60-year low, and that’s no surprise when you look at how much it costs to get on to the property ladder,” Dr Leigh said.
The shadow assistant minister highlighted that younger Australians are not lazy and they’re “not eating too many smashed avos”.
He argued that while in 1980 average house prices equaled twice an average incomes, today houses cost more than seven times the average take-home pay.
Adding fuel to the affordability debate, the latest government figures issued by the Australian Bureau of Statistics revealed first home buyers are now being pushed out of the market by investors.
ABS head of finance and wealth Katherine Keenan said investor lending has been growing steadily since hitting a 20-year low in May last year when COVID hit.
“The rise in March is the largest recorded since July 2003 and was driven by increased loan commitments to investors for existing dwellings,” she said.
Meanwhile, the number of first home buyers looking to enter the market fell by 3.1 per cent to 15,623 in March.