Can Young Australians Still Buy a Home? Coposit App Sparks Generational Debate on Property Affordability

In a recent video by property app Coposit Street, a Baby Boomer homeowner’s perspective on homeownership has stirred discussion across generations. Sharing her story of saving and working multiple jobs to buy her first home, she emphasized sacrifice as the key. “Start small, do two jobs, and don’t go out as much,” she advised. While intended to inspire, her words sparked backlash, with younger viewers describing the advice as “out of touch.”

Many Millennials and Gen Z respondents highlighted the challenges they face, noting that housing prices and incomes today are worlds apart from those of previous generations. One commenter noted, “We’ve turned our cars into taxis and spare rooms into hotels to try and afford the same thing they had on a single income.” This sentiment reflects broader concerns, as young Australians grapple with home prices and a rising cost of living.

The Growing Divide: Research on Income and Housing Affordability

Research from Finder underscores the generational gap in property affordability. Millennials must now save 1.3 to 1.5 times their annual income just for a deposit, whereas Baby Boomers only needed about 40% of their income. Rebecca Pike, money expert at Finder, notes, “Young Australians have a much steeper hill to climb to get onto the property ladder than their parents did.” This inflation-adjusted data reveals a challenging financial landscape, with Gen Z and Millennials earning less, on average, than Gen X did at a similar age.

How Coposit is Changing the Path to Homeownership

Coposit offers an innovative solution for those looking to enter the property market without the traditional large deposit. Through Coposit, home buyers can secure a property with smaller, manageable weekly payments instead of a lump sum deposit, making the process accessible for those who may find traditional savings methods challenging. By helping to bridge the gap between the high cost of real estate and limited income growth, Coposit is providing a modern alternative that addresses the unique financial realities young Australians face today.

Learn How Coposit Works

Source: news.com.au