Home News Gen Y and Gen X could be locked out of the property market – for good

Gen Y and Gen X could be locked out of the property market – for good

Font size :
New research shows that younger generations and traditional middle-class Aussies could see themselves locked out of the property market for all time due to stagnant wage growth and lack of affordable housing.

“The Gen Y’s and the middle cohort of wealth and income earners really are stuck,” said demographer Mark McCrindle in an interview with news.com.au. “It’s really hard for them to get ahead compared to the previous generation and they end up not only stalling as we’re seeing now on wages and net worth but failing to get into what became for the Baby Boomers the key source of their net worth—the family home.”

These 25 to 34-year-old individuals are not the only ones having a tough time in the market. Even the Gen X bracket of 35 to 44-year-olds are also struggling with the lack of wage growth and net worth, according to the 2013 to 2014 figures from the Australian Bureau of Statistics. These people are too wealthy to classify for income support and benefits, yet too poor to afford their homes without undue amounts of mortgage stress.

“We’ve still got a middle class but the middle class does not buy what it used to,” McCrindle said. “Being in that middle quintile does not automatically mean you’ve got a house paid off; in fact, far from it.”

It does not help that the affordability of homes in both Melbourne and Sydney are continuing to deteriorate.

“The problem is that much of the new housing is not particularly affordable,” said CoreLogic’s head of research Tim Lawless. “New housing needs to be affordable for someone on an average income.”

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Choosing the right mortgage is hard for many first-home buyers Choosing the right mortgage is hard for many first-home buyers

Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

More mortgage news and articles

Sponsored Links

Monday, Jul 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords