Prominently in the history of Australia, home ownership was a characteristic aspiration of ordinary Australians’ lives. Get educated, save a down payment, own your home. That was the deal. However, in the last ten years, That deal has unobtrusively fallen apart. In many cities, the value of houses has doubled. These prices have increased far faster than wages, which have hardly budged. Not a generation of Australians is being locked out — Not for lack of trying, but simply because numbers don’t add up anymore.

  1. Sydney’s median house now costs $1.4 million

    Median house prices across six Australian capital cities, 2014–2024

Source: ABS Total Value of Dwellings (cat. 6416.0); Domain Group House Price Report 2024. Hover over lines for exact values.

Sydney’s housing stock has more than doubled the median house price in 10 years – from $650k in 2014. to $1.4 million in 2024. The once affordable Brisbane and Adelaide have soared. past $800,000. Even Perth, which languished for years is now a member of the million dollar club.

  1. Rents and prices have left wages far behind

    Index of wage growth, rent growth, and house price growth in Australia (2015 = 100)

Source: ABS Wage Price Index (cat. 6345.0); ABS Consumer Price Index — Rents (cat. 6401.0); ABS Total Value of Dwellings (cat. 6416.0).

Australian wages have actually risen 24% since 2015. The increase in rentals is 52%. The price of houses has increased by almost 95%. Widely the gap is today. But if you’re like most people attempting to save a deposit while paying rent, the maths gets tougher each year!

  1. Nearly 3 in 4 low-income renters are in housing stress

    Share of households spending more than 30% of income on rent, by income group (2024–25)

Source: Productivity Commission, Report on Government Services 2026 (Table GA.12); AIHW Housing Affordability Report 2024–25. Hover for number of households affected.

People are considered to be in housing stress if they are spending over 30% of their gross income on their rent or mortgage. By this definition, 74.8% of the lowest income renters in Australia are in stress – even after Who are on Common Wealth Rent Assistance. The issue isn’t just the money - sustained Housing stress is associated with substandard health, reduced school performance and social isolation.

  1. Young Australians are being shut out of homeownership

    Home ownership rates (%) by age group, Australia 1981–2021

Source: ABS Census of Population and Housing 1981–2021 (cat. 2049.0). Hover over lines to see exact values by age group.

In 1981, 61% of Australians aged 25–34 owned their home. As of 2021, that had decreased to just 40%. The biggest drop has occurred in numbers of younger Australians — the generation that They were informed that if they were willing to put in the effort they could still afford to purchase a property. The older Other age groups (between 45 and 64) have remained fairly consistent, and show a generational gap.

  1. In Sydney, a low-income earner needs 28 years to save a deposit

    Estimated years to save a 20% house deposit, by city and income level

Source: ANZ CoreLogic Housing Affordability Report 2024; ABS Average Weekly Earnings (cat. 6302.0). Assumes 20% deposit, 20% savings rate, no interest on savings.

A first-time home buyer in Sydney earns $80,000 on average and can expect to be paying off their home for 14 years. savings journey. To someone who earns $40,000 (a worker, a carer, a cleaner): stretches to 28 years. At that time prices will undoubtedly have gone up even more. The Australian dream hasn’t gone away. It’s now a privilege only!

References

Australian Bureau of Statistics. (2026). Total value of dwellings, December quarter 2025 https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/total-value-dwellings/latest-release

Australian Bureau of Statistics. (2024). Wage price index, Australia, December 2024 (cat. no. 6345.0). https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/dec-2024

Australian Bureau of Statistics. (2022). Census of population and housing 2021. https://www.abs.gov.au/census

Australian Institute of Health and Welfare. (2024). Housing affordability. https://www.aihw.gov.au/reports/australias-welfare/housing-affordability

ANZ & CoreLogic. (2024). Housing affordability report, April 2024. https://www.anz.com.au/content/dam/anzcomau/bluenotes/documents/ANZ%20CoreLogic%20Housing%20Affordability%20report%20April%202024%20-%20FINAL%20(digital).pdf

Domain Group. (2025). Domain house price report: December quarter 2024. Available At: https://www.domain.com.au/research/house-price-report/december-2024/

National Housing Supply and Affordability Council. (2025). State of the housing system 2025. https://nhsac.gov.au

Productivity Commission. (2026). Report on government services 2026: Housing and homelessness. https://www.pc.gov.au/ongoing/report-on-government-services/housing-homelessness

Acknowledgements

Generative AI (Claude, Anthropic) was used solely to provide suggestions for code structure and guidance on resolving installation or library errors. All coding, data values, analysis, and final implementation were independently written and verified by the author.