In real terms, Aussie house values rose 301 per cent between 1975 and 2018, compared to income growth of 68 per cent, according to analysis by JLL.
So yes, it would seem your parents had it easier.
Population growth in our major cities, slow housing construction and higher borrowing capacity has fueled unprecedented growth in recent decades.
Coupled with a population that wants to buy property for investment purposes, our prices have shot up.
So will it be any easier for future generations to break into the housing market?
Not necessarily, but it won’t be any harder, the report suggests.
A sudden drop in prices is off the cards now the banks have eased the borrowing party that fueled the bubble conditions in Sydney and Melbourne.
“With the debt tap firmly turned down, all that would cause a sharp collapse in house prices is a demand shock that lifts unemployment. And the probability of such a shock is relatively low,” the JLL report says.
While prices are likely to remain high, it would seem the JLL boffins are predicting price growth won’t continue indefinitely at the rapid rate we’ve seen.
“Sydney and Melbourne are likely to see little growth for an extended period while incomes catch up,” they report.
“But other capital cities like Brisbane and Perth, and some regional areas, are better placed for solid real price growth from 2020 onwards.”
Ready to buy? View our current listings for sale.
Still saving your deposit? check our listings for rent.
