house-gen-z
Property prices tipped to keep rising, bad news for young people. Image – Canva
  • 37% believe Gen Z is the hardest done by
  • Saving for a home deposit is becoming ever harder
  • A Consumer Pulse Report has been released by Canstar

Younger generations are being deemed as the hardest done by as high property prices persist nationwide, according to a Consumer Pulse Report released by Canstar.

The SQM data below shows a jump in property prices since the pandemic began. 44% of Aussies anticipate a steady increase in property prices in the coming two years while 18% expect a steep skyrocket in prices.

National

Canstar’s research found that only 12% predict prices will remain stable and 11% foresee an easing or crash.

Gen Z has it the hardest when it comes to purchasing property according to 37% of Australians. Baby boomers on the other hand have it the easiest. Only 7% perceive them as having it hard.

With the median house price sitting at $43,014, the average income to debt ratio was 2.6 in 1980. This is a stark contrast to this year’s inflated house median house price of $744,688 coupled with an income to debt ratio of 6.6.

Canstar’s Group Executive of Financial Services, Steve Mickenbecker suspects the debate will endure for years to come although younger Australians are perceived as being the hardest done by.

“Runaway house prices in 2021 are making the task of putting together a deposit still less attainable for first home buyers,”

Steve Mickenbecker, Canstar’s Group Executive

“In introducing higher capital requirements for banks, APRA will be hoping to slow housing price growth, but with banks already charging higher interest rates for investment, it may not be enough,” he said.

“If the Australian dream of homeownership is to survive this decade, we need to slow investment lending by easing the brakes on now.

If next year is another year like 2021, there will be a need to slam on the brakes.”

Winners and losers

While some are falling victim to the heightened property prices, Mr Mickenbecker explains that there are also winners.

“Rising property values are bad news for first home buyers, but existing property
owners are revelling in a home equity surge,” he said.

“Homeowners in New South Wales have seen the biggest increase, lifting home equity to $407,299, followed by Victorian homeowners with $312,578.”

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