Australia’s younger generations face economic conditions similar to the mid-20th century, with homeownership rates among 25-to-34-year-olds stagnating at levels recorded during World War Two.
The 1940s Homeownership Parallels
Analysis from social welfare charity Anglicare Australia indicates that less than 40 per cent of Australians between 25 and 34 were recorded as homeowners in the 2021 Census, a figure projected to have declined since that time. This proportion is equivalent to the homeownership rate recorded in the 1940s, a period defined by global shocks and structural inequalities before the post-war boom took hold.
This was a time of rapid residential construction and increases in home ownership, with policies prioritising construction and housing for veterans.
Squeezed by Surging Rents and Casual Work
While property values have climbed steadily over the decades, younger buyers face affordability barriers. Productivity Commission economist Angela Jackson notes that purchasing a home currently requires a much higher portion of one’s income compared to the experience of Gen Z’s parents or grandparents.
Compounding the problem is the shifting nature of employment. Younger workers are increasingly tethered to casual roles, the gig economy, or less secure work, and entry-level positions with lower relative wages. This makes entering into mortgages and those long-term financial arrangements more difficult.
Meanwhile, the rental market has intensified the strain. According to Anglicare Australia, the median weekly unit rent across Australia remains just shy of $700, which makes rental properties unaffordable for those receiving the Youth Allowance.
Compounding the housing shortage in major metropolitan areas like Sydney, Melbourne, and Brisbane, informal rationing mechanisms—such as waitlists, lottery-based allocations, and priority scoring for public housing—have re-emerged to manage systemic shortfalls.
Advocacy Groups Urge Overhaul of Inadequate Youth Allowance
Advocacy groups are urging federal policymakers to overhaul current support systems to alleviate financial pressures on youth. Anglicare Australia has highlighted the inadequacy of the Youth Allowance, noting that despite an indexed increase bringing the maximum payment to $1,087.20 in September, the rate can be much lower depending on age, living situation and dependents, and they can’t afford rent on Youth Allowance anywhere in the country.
