Housing is OK for Boomers

IT’S a battle for the ages, with Baby Boomers and Millennials pitted against each other.

We’ve all heard the complaints about smashed avocado on toast or cashed-up older Aussies outbidding youngsters for property, but which generation really had it easier when buying a home?

Comparison website Finder.com.au has crunched the numbers using data from CoreLogic, the Australian Bureau of Statistics and the Reserve Bank.

Its verdict? “Baby Boomers had a far easier time, both buying and repaying their home, than Millennials do today,” said Finder insights manager Graham Cooke.

This is despite Boomers being slugged with interest rates above 17 per cent three decades ago. “The average home cost 3.5 times the average salary in 1985,” Mr Cooke said.

“That figure stands at

6.7 times today, and even higher than that in big capitals like Sydney and Melbourne.

“Boomers often talk about the high interest rates that they had to pay when they purchased houses, and they certainly did. However, they also made more interest on their money – so saving for a deposit was far easier.”

Finder’s analysis shows:

● average full-time wages have increased 4.3 times, from $20,644 to $88,140.

● house costs have increased 8.2 times, from

$72,827 to $596,986.

● of household income spent on mortgages climbed from 28 per cent to 36 per cent.

Social researcher Mark McCrindle said debate over which generation had it easier was “nuanced”, but it was a big challenge for younger people to buy property. He said they faced new spending categories such as smartphones, internet and subscriptions, and were investing in their own education more, which would eventually deliver higher wages.

Mr McCrindle said Millennials also benefited from a more stable economy, lower mortgage interest rates and reduced prices for goods, such as groceries and electronics.

Boomers were happy to help children who were priced out of the market to buy a house. “A lot of Boomers say, ‘I couldn’t afford to buy where I currently live’,” Mr McCrindle said.

Since 1985, Capital city The proportion

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