Australia has changed majorly since 1975- demographically, socially, economically, technologically and culturally. This country has drastically changed its laws and financial side to better citizens needs. Back then, the population of Australia was 13.7 million and the average of getting married was the early 20’s.
Now, women and men are getting married in their late 20’s or early 30’s. Forty years makes a large difference as the median full time wage was just over $7,000 per year, now it is over 70,000 per annum.
The cost of a loaf of bread 40 years ago was 24 cents and now it is $2.84. Living in Australia is becoming more and more difficult to afford daily items.
For housing prices, it just got even more difficult for generation Z to afford a house in Sydney, as the avertage price has increased to $850,000 in 2015 from $28,000 in 1975. This is unfortunately 7.8 times the average annual salary (inc. overtime and bonuses).
The Australian Bureau of Statistics showed it was because of the huge interest rate increase and house prices are pushed up. However, they have seen some periods where it has become elevated and corrected itself. This is the ideal time to buy a house.
— Callam Pickering (@CallamPickering) September 20, 2016
The average buyer was spending their whole wage (nearly 13.5%) to afford a home.