A Teen’s Worry Over Future Housing Affordability
At just 13 years old, Sebastian Munoz-Najar is already grappling with the anxiety of whether he will ever be able to afford a home. Young Australians are entering the housing market later in life than their predecessors, and as housing costs continue to outpace wages, the next generation is increasingly concerned that they may never catch up.
Sebastian and his family live in Adelaide, where the average home price is currently around $940,000. The Year 8 student calculated that if house prices continue to rise at the rate of 6.8 per cent a year, as they have in previous decades, prices could climb to $1.6 million by the time he graduates university and $5.5 million by the time he turns 40.
Sebastian shared his findings with Yahoo Finance, explaining that he decided to do the math one weekend with his dad and created a website highlighting the grim projections.
The Growing Concern Among Young Australians
Recent research from Monash University found that 79 per cent of 18 to 24-year-olds believe they will be financially worse off than their parents, while 42 per cent think it’s unlikely they will be able to buy a house.
Sebastian is part of Gen Alpha, the current generation of kids born between 2010 and 2024 who are growing up in an era marked by economic volatility and rising housing unaffordability. According to McCrindle, Gen Alpha will outnumber Baby Boomers within the next four years and are set to be the biggest generation in the world, exceeding 2 billion.
Sebastian’s father, Edgardo Munoz-Najar, admitted it was sad to see his son already worried about housing affordability. “He should be worrying about his homework, not housing,” he told Yahoo Finance. Edgardo migrated to Australia from Peru when he was 30, and he and his wife were among the “lucky ones” who were able to buy their own home some time ago.
“We’re a little bit older. We’re in our 40s, going to our 50s, but I can see the people that I work with in the team I lead, they are struggling,” he said. “My surprise is that not only they are struggling, I’m hearing from Sebastian and his friends are worried too. That was quite a surprise.”
Taking Action for Change
Edgardo believes it’s easy for younger people to feel powerless over the situation, but he wants to show his son he has the tools to make a difference. Along with the website, the pair have created a Change.org petition calling on the government to take action on housing affordability.
“I’m trying to teach him to feel empowered, not powerless. So he tried, he pushed the right way, other people will push in the same direction. Hopefully, they will nudge the needle in the right direction,” he said.
The petition has called for the government to end negative gearing beyond one investment property and scrap the capital gains tax discount for investors with multiple properties. It’s something the government is actively considering in the upcoming federal budget, with the Treasury reportedly modelling new rules that would limit negative gearing to two investment properties and considering lowering the capital gains discount.
A Generation’s Call for Change
Sebastian said he has been surprised the government hasn’t done anything to address housing affordability, considering his generation will be able to vote in the next few years.
“There is an opportunity for things to get better if politicians act now and act with speed. I think if we let this issue sit on the table for too long, then it might be too late in the future,” he said.
As Gen Alpha grows up, their concerns about housing affordability are becoming more pronounced. With the challenges they face, it’s clear that the conversation around housing policy must evolve to ensure that future generations have a fair chance to build stable lives.
