Why 26 years of growth is causing “a huge social problem” in Australia

Home ownership among younger buyers is at an all-time low

TRD New York TRD WEEKEND EDITION /
Oct.October 07, 2017 04:04 PM

In Sydney, home prices have increased over 140 percent in 15 years. (Pixabay)

Australian home ownership is at an all-time low as the country’s 26-year property boom continues undeterred with only 45 percent of 25 to 34-year-olds owning homes.

In Sydney, home prices have increased over 140 percent in 15 years making it the second most expensive housing market in the world — surpassing both New York and London. The city of Melbourne, the world’s “most livable city” according to the Economist Intelligence Unit for the seventh year in a row, isn’t far behind; it’s now the sixth most expensive housing market.

The affordable housing crisis amounts to “a huge social problem” where younger generations are not able to accumulate wealth in any similar way to how previous generations did, according to Bloomberg News. This means timelines for life events like marriage or childbirth will be altered for “Generation Rent” — the young adults unable to buy homes — as well as a burgeoning geographical disparity between where city services are offered in comparison to the distant neighborhoods where people can afford to live.

Grattan Institute housing policy expert Brendan Coates told Bloomberg it would take “at least two decades to fix” Australia’s affordable housing crisis.

[Bloomberg News] — E.K. Hudson


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
(Photo courtesy of Winkworth)

London’s so-called skinniest home hits the market

London’s so-called skinniest home hits the market
(iStock)

Déjà vu: New home sales hit 14-year high in August

Déjà vu: New home sales hit 14-year high in August
Neiman Marcus at Hudson Yards and Geoffroy van Raemdonck (Getty)

Neiman Marcus exits bankruptcy $4B lighter

Neiman Marcus exits bankruptcy $4B lighter
Charles Rettig, Commissioner of the IRS (Getty)

Opportunity Zone rule change seeks to entice foreign investors

Opportunity Zone rule change seeks to entice foreign investors
Keith Gelb and Bill Walton with 63 and 67 Wall Street (Rockpoint, Google Maps)

Rockpoint Group settles alleged rent-stabilization violations for $5M

Rockpoint Group settles alleged rent-stabilization violations for $5M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...