Aussie House Prices: A Generational Divide

0:00On this February 26th in Adelaide, here's what is making headlines. Australian House prices rank among the highest in the world today. Back in the early 2000s, under Prime Minister John Howard, prices had already doubled over seven years as low interest rates let people borrow. More and bit up homes. Policies like negative gearing supercharged the boom by letting investors deduct losses from their regular income taxes. That funneled cash into housing, making property a top choice for building wealth while cutting taxes. Younger generations now face a tough market. Baby boomers often bought before age 30, but just 36% of millennials did the same. Many feel locked out forever, with average homes now costing about 18 years of income. Even after 13 rate hikes from pandemic lows, prices kept climbing. Investors jump back in when rates eased, hitting decade high lending levels, fueled by tax perks no other country matches as generously. This growing divide risks creating a property-based class system.

1:03Parents help kids via the bank of Mum and Dad for 60% of first buys, but politicians ignoring young voters could pay a steep price. D&N is brought to you by our sponsor, your pillow, your podcast, your moment, made for listening in bed, S-O-L-L-I, solelypillo.com,