Millennials more disadvantaged than baby boomers in buying Australian property

Millennials are more disadvantaged in buying property than the generations who came before them, a new survey has found.

In an exclusive poll conducted by 9Nation, 70 per cent of Australians believe it is harder for millennials to purchase property now than it was for their parents.

Additionally, 58 percent of those surveyed said the reason why young people cannot achieve the Australian dream was because the market is now out of reach for those earning an average income.

The results come from more than 825 participants, 39 per cent of which believed that millennials are unwilling to sacrifice in order to save for a home.

Generationally, the data shows the median property value is escalating far quicker than the median wage.

According to property research firm CoreLogic, the median Australian property value – including both apartments and free-standing homes – is now $537,506.

The median Australian income, from the Australian Bureau of Statistics, now sits at $82,436.

In raw numbers, the average cost of a home is therefore 6.5 times greater than the average wage.

Compare that to 30 years ago.

In 1990 the average cost of a home in an Australian capital city was $117,571, and the average income was $27,227 – making a difference of approximately 4.3.

In Sydney, where the current median house price is a staggering $1.2 million, millennials earning an average wage would have to save the entirety of their income with zero expenses for 15 years to afford a home.

According to CoreLogic head of research Tim Lawless, the rebound in housing values has been largely driven by Sydney and Melbourne where values have recovered by more than 8 per cent since bottoming out in May; a much faster pace of recovery than anticipated. 

Based on the trajectory of growth, Mr Lawless said, "housing affordability is once again worsening and the value gap between the capital cities is widening as Sydney and Melbourne values appreciate faster relative to the other capitals".

According to Mr Lawless, cheap property in regional areas is meaningless if there are not job opportunities for investors.

"A key ingredient still missing from capitals outside of Sydney and Melbourne is jobs," said Mr Lawless.

"An affordable entry point to the housing market is less meaningful when job opportunities are scarce."

Australia's property prices October 2019

*CoreLogic Data October 2019. Includes both units and freestanding homes.