Gen Z Aussies face brutal reality check as boomer reveals why they can’t afford a house

A baby boomer has divided Australians by saying millennials and Gen Z are “not making the sacrifices” required to own their own home.

A woman who said she worked two jobs to save for a deposit gave harsh advice during an interview with property investment company Coposit.

During the interview, which was posted on social media, the woman was asked what she thought about young Australians trying to get into the property market.

“They don’t make sacrifices,” she said.

“When I was younger, I never did brunch or parties, and now they wanted to say, ‘I’m going to a party.’

A woman who said her father helped her get into the property market by acting as a guarantor admitted home ownership was “difficult” at the moment.

“I feel sorry for the younger generation now because they think why bother because (owning a home) is too expensive,” she said.

Despite the challenges, she suggested some simple lifestyle changes young Australians can make to save money.

“They can start small, a lot of people buy spaces that are too big, but you have to make sacrifices,” she said.

“I take lunch with me to work. If you want to own your own home, start small. Work two jobs, work a lot. Don’t go outside as much as you want.”

The clip attracted dozens of comments, with many young Australians furious at her advice.

“Oh, bless her. No actual idea that things have changed. Working hard and giving up coffee is no longer enough,” one person wrote.

“We turned our cars into taxis and our spare rooms into hotels to try to afford the same things they had on one income,” another person wrote.

“Infuriating,” chimed in a third.

Others agreed with the woman’s comments.

“She’s not actually wrong, but people heard that first line and (started) typing,” one person wrote.

Some young homeowners say that although they have achieved their dream of buying their own property, the task is out of reach for many people of the same age.

“I am a millennial who was lucky enough to enter the market in 2017. I can’t imagine trying to save a $60k to $100k deposit now, I sacrificed everything to get where I am,” one person wrote.

The average Australian house price of $873,116 is 8.7 times the average full-time salary of $100,017, according to CoreLogic.

A person would need to earn $134,326 just to qualify for the loan, meaning only a working couple would qualify for a mortgage from the bank.

A generation ago, in the 1980s, the average priced home in Melbourne cost just three times the average salary.

Sydney remains the most expensive capital city to buy a home, with the average house price at $1.474 million, almost 15 times the average pre-tax salary.

Recent Domain data revealed the staggering amount Australians would need to save to afford a 20 per cent deposit.

First-time homeowners need to save $332,000, while Melbourne and Brisbane residents need to save $213,761 and $195,293.

First home owners have also faced successive increases in interest rates after the Reserve Bank raised rates 13 times since May 2022. The cash rate is at a 12-year high of 4.35 percent.

Australia is also struggling to control inflation, which has left families struggling with high costs of living.

The inflation rate has finally fallen within the Reserve Bank’s two to three per cent range for the first time in three years, thanks to $300 energy rebates.

The consumer price index (or headline inflation) fell to 2.7% in August, a sharp drop from 3.5% in July.

The futures market expects rates to cut in 2025, which could cause home prices to rise at an even faster rate.