Housing affordability_ new report suggests gen y is pessimistic about owning a home

The Institute of Public Affairs, a right-wing, free-market think tank, has released a report into how young Australians feel about their future.

The study included over a thousand young people aged between 16 and 25, with respondents asked for their views on everything from democracy and freedom of speech to the economy.

62 per cent of respondents do not see themselves owning a house by their 30s, and 12 per cent do not believe they will ever be able to own their own home in Australia.

Most respondents said they believe it will take up to 20 years for them to be able to purchase their first property — in other words, when they’re as old as 45.

Bankwest’s latest First Time Buyer Deposit Report, released last week, found it now takes an average Sydney couple more than eight years to save up a deposit to buy a house.

The report, entitled “Australian first time home buyers locked out of market”, compared local incomes to house prices, which it used to calculate how long it would take for a couple to set aside 20 per cent of their pre-tax income into a savings account to accumulate an average 20 per cent deposit.

In Sydney, where the average house price is now over a million dollars, the magic number for a deposit is almost $215,000. Housing benefit allowance That means there’s been a deterioration of around 45 per cent in first home buyer affordability to now.

According to the Australian Bureau of Statistics, about a third of young childless people are still living with their parents, and that figure is rising.

Meanwhile the Australian Unity Wellbeing Index, released last week, found that adults in this living situation have seen their level of personal wellbeing drop to its lowest level in a decade.

In other words, Gen Y Australians are both historically unhappy and utterly pessimistic about breaking out of that unhappiness by purchasing a home for at least another 10 to 20 years.

$1.4 million for a burnt down two bedroom home, 10 minutes from Sydney’s CBD. Housing benefit rates Bargain. Claiming housing benefit when working pic.twitter.com/Ha6NpAsy2q— Alice Workman (@workmanalice) October 31, 2016

A 45-page report from the House of Representatives Standing Committee on Economics​​ failed to include a single recommendation on affordable housing, implying housing affordability is not an issue.

Other than pointing out that the rate of home ownership in Australia has fallen from 71 per cent to 67 per cent over the past 15 years, the government evidently felt no reason to address the issue.

The Opposition has called for negative gearing to be wound back, pointing out there is a national shortfall of housing, and that rates of home ownership among 25-34 year olds has fallen from 60 per cent to 48 per cent over the past 25 years.

“In 1990 an average house was 6 times a young person’s income, but by 2013 it had risen to 12 times their annual average pay,” Adam Bandt wrote on Facebook.