The rising cost of housing has forced young Australians to stay at home longer with 25 per cent of millennials stuck with their parents after turning 30.
New Finder analysis found 62 per cent of Baby Boomers bought their first home by age 30, compared to just 34 per cent of Millennials.
The vast majority of Baby Boomers (92 per cent) moved out of their childhood home by age 30, compared to 75 per cent of Gen X and 72 per cent of Millennials.
In a sign times have changed for the worse for younger generations, far more Baby Boomers had also bought their first car, taken out insurance, married and had their first child by age 30.
Senior editor of money at Finder, Sarah Megginson said the growing wealth gap between younger Australians and lack of affordable housing was stark.
“Many young people are concerned that unanticipated price growth over the last couple of years has ruined their chances of buying a home,” Ms Megginson said.
“The pandemic had a disproportionate impact on young Aussies, who were more likely to lose work or have their studies disrupted.
“They’re also the least likely to have benefitted from rising house prices – resulting in a double whammy blow to their finances.”
While property prices have risen sharply around the country there are still significant differences in affordability between cities.
The average Western Australian has bought a property at age 27, while it takes NSW buyers until age 34 to buy their first home.
Despite low interest rates reducing borrowing costs for homebuyers, Finder analysis found Millennials are paying 4.9 times more for a home than Baby Boomers did.
Ms Megginson said first home buyers are looking at different options to get into the property market.
“Aussies aren’t just putting off home ownership because they can’t afford it – many young people are choosing to take time to travel or invest in their studies,” she said.
“Now that some of the heat has come out of the property market, and with prices expected to fall slightly in the year ahead, you might actually be in a better position to buy in the near future.
“If you want to buy sooner than later, there are low-deposit home loans that help you purchase a home with as little as 5 per cent deposit.
“Just make sure you crunch the numbers so you know you can afford your mortgage repayments.”
