The Australian housing affordability crisis is increasingly becoming one of the most concerning issues regarding the lives of young people across the country, with living prices projected to continue to rise.
Raising housing prices and the subsequent repercussions of that been well documented across the past decade, as the nation struggles through an unprecedented time in the young country’s history.
The nation has seen an average 7% increase in median housing prices annually, with the median house price in Australia’s capital cities currently sitting at $928,812.
It’s also predicted by the year 2043, the median house price in Australia will be approximately $3 million.
This number may be seen incomprehensible, with housing prices already increasing to a level that makes the once common dream for many young Australians of owning a house unrealistic particularly in the short-term and medium-term future.
There are a range of factors which are contributing to the ongoing and consistent surge of prices across Australia relating to supply and demand as well as a range of other factors.
These include the raising of average incomes across Australia with the Australian Bureau of Statistics (ABS) recently publishing a report stating the average yearly wage of around $92,000.
Because the average income is increasing, it is a contributing factor in the resulting increase in value of property as because there is more money being earned in the community, it makes assets even more in demand and hence costly.
With anyone in Australia earning under that salary considered a below average earner further accentuates the growing issue young people in the country are facing in their aspirations to become homeowners.
However, there have been some decreases in housing prices across the country, and the government are actively attempting to help decrease the severity of the situation.
Population growth is also another key contributing factor towards the crisis, with the growth of the population meaning more of a demand for property.
Federal and state leaders of Australia have met this year to tackle the ongoing housing affordability crisis.
The meeting was convened by the housing and homelessness minister, Julie Collins, with the aim of developing a national response to the ongoing and developing crisis.
But large strides need to be made in order to provide young Australians with the support they need in order to get into their own homes.
The number of houses being owned without a mortgage is contributing to drop as seen in the figure below.
This demonstrates a trend that seems to be continuing to trend downwards and with other statistics pointing in the direction of this affordability crisis growing, it provides a bleak outlook for young Australians.
I was lucky enough to have a phone call with John Asvestas, a 21-year-old from Melbourne still living at home with his parents, but growing more concerned the older he gets.
He provides us with an insight into the thoughts of an every day young Australian.
The ever-growing issue presents young Australians with the difficult prospect of potentially never being able to own their own home in their desired city.
