Boomer Homebuyers had to fight at the highest interest rates in Australian history – but there is a reason why they ‘have more difficult’ is a big lie

Baby Boomers was much easier than the younger generations bought a house – even though they had to pay exorbitantly high interest rates.

The generation born after the war was hit in the late 1980s with massive interest rates of 18 percent.

Those reimbursements were paralyzing when they were in the seventies and eighty years old, but houses were considerably cheaper compared to typical incomes.

That was also back when the population of Australia was almost half of what it is today, long before the annual immigration levels rose.

Baby Boomer -economist Saul Eslake bought his first house Melbourne‘s St Kilda East for $ 105,000 in 1984 with a salary of $ 35,000 when he was 26, after he benefited from free university education.

With a mortgage of $ 80,000, he borrowed little more than double his wages before tax and refers to any suggestion that his boomer generation did more difficult – despite the high interest rates he paid.

‘I paid eighteen and a half percent for part of it, but my first home cost $ 105,000 and it took me less than three years to save the down payment“He told Daily Mail Australia.

‘Although the interest rates are less than half what I paid, it was not nearly as heavy as now and I had no hecs debts to bear fruit because I was part of that lucky generation when it was free.

“My generation was quite simple – we received free education, we have housing very cheap and we have made a motza of the increase in house prices we voted for.”

In 1980, Sydney’s Mid-point priced house cost $ 65,000, or only 4.5 times the average, full-time male wage in an era in which a woman would have trouble getting a mortgage without a signature from her husband.

Proptrack of real estate Data Proptrack estimated that Sydney’s median house would do Today costs $ 338,000, or only 4.3 times the average salary now for all Australian employees, If house prices had risen at the same pace in the last 45 years as wages.

In 2025, Sydney’s Central Priced House Costs $ 1.47 million or 14.3 times the average, full -time salary of $ 103,000.

But that price-to-income ratio rises to 18.7 If it is based on the average salary of $ 78,567 for all employees.

AMP -place replacement economist Diana Mousina, a millennial, said that the younger generations now had more difficult to save for 20 percent mortgage deposit to buy a house.

‘The problem is now just coming on the market – that is what the larger piece is trying to save; It takes 11 years to save, “she said.

The Mid-Point House Price from Melbourne only cost $ 40,000 in 1980 or 2.8 times the average male salary.

If affordability had remained constant, a typical Melbourne would now only cost $ 205,400.

But the median house price of the Victorian capital of $ 850,000 is now 10.8 times the average salary for all employees.

The median house price of Brisbane cost $ 32,750 in 1980 or only 2.2 times what an average man earned.

That would be $ 174,600 today if the purchasing power had not changed.

Queensland Capital Houses now costs $ 910,000 or 11.6 times the average salary.

It is unlikely that the large banks borrow someone more than five times his wages, which means that many couples would now have trouble getting a loan for a capital city house, unless they moved to a distant suburbs and had a large deposit.

The affordability of housing deteriorated after the introduction of the 50 percent capital gain tax in 1999, just before the annual immigration levels tripled in the 2000s.

“Since about 2000 you have seen house prices with regard to income with a considerable amount – it is the fact that we have led high levels of population growth – so immigration, so more demand for housing,” said Mrs. Mousina.

‘We have held high migration goals, at the same time we have not built enough houses throughout the country.

“We have pretty favorable investment concessions for housing, including negative acceleration, power gain tax concession.”

Mr Eslake said that politicians from both sides of politics wanted house prices to rise, because more voters were homeowners than tenants trying to get to the market.

“Despite all the crocodile tans who throw politicians about the difficulties that potential buyers of the first house are confronted, they know that there are only 110,000 of them in a certain year,” he said.

‘Even if you assume that for anyone who succeeds in becoming a first home buyer, there are five or six who want it but cannot do – that is a maximum of around 750,000 votes for policy that would limit the rate against which house prices are rising.

‘While the politicians know that at some point there are at least 11 million Australians who own their own home; There are 2.5 million Australians who Possesses at least one investment possession.

‘Even the stupidest of our politicians – as the Americans say:’ Do mathematics’, therefore at every election, politicians on both sides of the gap – while hiding the difficulties Faced by buyers from the first house – Promise and implement policy that makes it worse because they know that a large majority of the Australian population does not want the problem to be solved. ‘

Sydney was the first market become seriously priceless As the most expensive metropolitan housing market in Australia.

In 1990 the typical Sydney House cost $ 187,500 or $ 447,300 now if affordability had remained constant.

A decade later 2000, shortly after the introduction of the tax credit of 50 percent power gain, a typical house in Sydney costs $ 284,950.

That would translate today into $ 544,000 if affordability had remained constant.

This would also be the point where a single, average income earner could still get a loan on a piece with a mortgage deposit of 20 percent.

By 2010, Sydney’s average house cost $ 600,000 or nine times the average, full -time salary, Placing a house with a backyard beyond the reach of an average income earner who only buys.

In addition, the affordability crisis for housing has Ophtens if the Australian population has risen from 14.5 million in 1980 to 27.3 million now.

In the 2000s, the annual net overseas migration of 111,441 doubled at the start of the decade to 315,700 in 2008 when mining growth stimulated population growth.

After Australia was closed during COVID, immigration rose to a new record high of 548,800 in 2023, which led to the rise of house prices, even when the reserve bench was draw up interest rates.

If it concerned the stereotype of young people who waste their money on a broken avocado breakfast instead of saving for a house payment, Mr Eslake would have a simple answer to that.

“At least a very visible rolling of the eyeballs,” he said.