It is no secret that young Australians have had trouble saving for a house deposit – and this may be why.
A new report has been revealed that the reason that young potential buyers miss is a result of historically low wage growth between 2012 and 2022, which accumulates to around $ 600 billion in lost wages.
The report, ‘The Lost Decade’, by per head of the population has shown how much the average income earner lost in those 10 years as a result of low wage growth, while the appreciation for homes shot up with alarming unequal rates.
More: Panic buying fuels lightning sales in western Sydney
A study per head of the population has shown that Aussies have suffered a historically low wage growth for more than ten years.
The statistics showed that wages rose only 0.2 percent annually during this period, which means that in 2025 the average wage was approximately $ 12,000 lower than what it would have been if the increase consistent with the historic average.
“Data from the large banks of Australia shows that the typical first homebuyer is a few in their mid -thirty borrow slightly less than $ 500,000,” explained main author Emma Dawson.
“If they had enjoyed the same wage growth as their parents early in their career, they would each earn an extra $ 54,000 during the lost decade. Combined, that would have been enough for a 20 percent deposit on their first home today.
More: How Sydney Postie did not go from no savings to $ 1.7 million
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Losing a slow wage growth amounted to $ 600 billion.
“At the end of 2022, almost two -thirds of the young people told the Australian Housing Monitor per head of the population that the only way they could ever buy a house was if they had a great legacy.”
The lack of growth in combination with rising house prices has played a share in freezing the Millennial and Gen Z -population from the housing market, in the conviction that their only way could be with the help of parents of family.
Young Australians fear that the only way to the market is to rely on the help of family.
“Young Australians nowadays believe that someone they will love to die before they can reach the great Australian dream of home ownership. This is a damn charge against the loss of social mobility in a country that is long considered the country of fair question.”
However, the report also showed that since September 2022 the real wages have started to grow again.
The wage share of national income has since risen by 3.8 percentage points and the profit share is falling by 4.6 percentage points between September 2022 and December last year.
As a result, the affordability of housing can be on the horizon and there can still be hope for young buyers.
#Decade #Wage #Growing #costs #Aussies #54k #house #deposit #realestate.com.au