This is an opinion article written by Lynne Strong

For those who bought homes in the 1970s, it’s time for a reality check.

Recent data from Ironfish reveals a stark reality: the house price to wage ratio in Sydney has now escalated to approximately 1:14, a 27 per cent increase from 2019 when the ratio was around 1:11.

That means if you save every dollar you earnt without spending anything, it would take you 14 years of your entire income to buy a house.

Are we blind to the financial burdens we are passing on to the next generation?

House prices are outpacing wage growth at an alarming rate and the implications are profound. As housing becomes more expensive relative to incomes, it places an unprecedented financial burden on those trying to buy their first home.

The rental market also reflects these pressures. The median weekly rent for houses is $690 and for units it is $600.

Renters now spend more than 30 per cent of their median weekly wage on rent. The higher rental costs strain household budgets, leaving less disposable income for other necessities.

For those who secured housing when the price to wage ratios were lower, its challenging to fully grasp the difficulties faced by new property market entrants.

We need comprehensive and tailored housing policies targeting affordability, which support first-time buyers.

Creditsavings.com.au and ABS

Compounding these issues is the rising cost of food. Household spending on groceries has surged by 27 per cent from October 2021 to October 2023. That’s an 80 per cent increase relative to wage growth since 2019.

Mortgages, rents and inflation are exacerbating financial stress for many Australians.

By tackling these issues we can work towards a future where housing is accessible and affordable for all Australians, ensuring that the dream of homeownership remains within reach.

We must work towards a future where housing is accessible and affordable for all Australians.

Doesn’t everyone have a right to have a roof over their head?