Young Aussie woman's confession about housing and children triggers passionate debate online

News.com.au

9 hours ago

A young woman's blunt assessment of her future in Sydney has captured a growing sentiment shared by Australians under 40.
As soaring living costs and stagnant wages continue to crush household budgets and reshape life decisions, Australia is quickly joining an ominous club on the world stage.
The nation's birth rate has experienced a massive decline over the past six decades and there is absolutely no sign of it stopping any time soon.
Young Australians are clearly fed up about the cost of existing in the nation's biggest cities and it's rapidly reshaping how they view their future.
'We don't want to leave. But we're being priced out to the point where I can't afford it here anymore,' the young woman told the ABC in a now-viral video clip.
'I work a full-time job and I also study part time. I also tutor on the side just to make it, so I can afford living in Sydney.
'It's not just housing. You have to pay for your food, and hanging out with your friends. Do you not want us to socialise anymore?'
Another young man said the idea of having kids was completely off the table.
'Too expensive,' he said. 'I wouldn't have kids just for the simple (fact) that I wouldn't have time to give to them under my current economic position. Even though it is something that would bring me a lot of joy, and something I would love to do.'
The young woman agreed.
'Just look at how our society is built. We don't even have the housing that can give us the security to even have children.'
Her confession about not having enough financial security to have children struck a chord online.
'Tough love' solution doesn't cut it
'Maybe move out of Sydney if you can't afford it,' one man wrote.
'Both my parents left Sydney to move somewhere more affordable. The concept is nothing new,' added another.
'Affordable is just a little further out now. You either adapt and do what you can or wait for big daddy govt. to save the day,' he continued.
But for those suggesting a tough-love solution, urging young people to 'suck it up' or 'make more money', experts say there is a catch.
And it has nothing to do with 'interest rates being higher in the 80s'.
By and large, the baby boomer generation, and even some of the next, was able to build a family on a single wage. They were also able to capitalise on dirt-cheap real estate, use it to leverage more purchases, and then profit from historically unprecedented price rises.
That idea is a fever dream for young Aussies today, unless they've somehow landed themselves a quarter-million-per-year job or fallen into a trust fund or inheritance.
Associate Professor at the University of Sydney Gareth Bryant explains that the housing 'phenomenon' in the early 2000s saw a rapid increase in the home-price-to-income ratio that has never been rectified.
He says that the high interest rates of the late 80s and 90s meant home ownership was hard, but it was mostly an 'income issue', meaning you could eventually work your way up to a position to afford high rates.
But now, with the average dwelling costing seven to 10 times the average Aussie wage, it's become more than just an income issue.
'The problem now is you still need high income but a reasonable amount of wealth to have the deposit,' Prof. Bryant told news.com.au.
'It used to be much more possible for those with good jobs to save for a deposit.
'For a lot of people in decent jobs, it's really difficult to save, unless you've got some kind of additional assistance.'
He says the rise in housing has naturally forced millions to enter the housing market later in life, or not at all.
'There's a delay. People are buying and forming families later, there are many who will be lifelong renters, or 'generation rent'.'
In 1980, Australian households typically spent about 60 per cent of their disposable income on essential living expenses, including housing, food, transport, and utilities. This left a modest buffer for savings or discretionary spending.
Almost one in two households were single-income, with one partner typically staying at home.
By 2025, despite higher average incomes, the proportion of income required for living costs has increased significantly. Rising housing costs, particularly in major cities, have forced many households to allocate a larger share of their income to essentials.
Today, around 73 per cent of families with children under 15 have both parents employed.
We have also seen the great devaluing of tertiary education.
In 1980, approximately 5 per cent of Australians aged 15-74 held a bachelor's degree or higher.
By 2024, this figure had risen to a whopping 33 per cent.
In the 80s, you could build a family on one income, even if you were among the outstanding majority (95 per cent) of those without university qualifications.
Today, the story is the opposite, with several couples claiming their monthly expenses are too high to consider children, despite both working in fields requiring tertiary educations.
Put it into perspective
Let's say we have a couple, both 35, earning $100,000 each, in line with the national average.
They sacrifice a lot throughout their 20s to save over a quarter million ($292,000) for a deposit.
But that deposit can only land them a three-bedroom home in Sydney's western suburbs selling for the city's current median price.
For a $1,168,000 loan over 30 years at 6.0 per cent interest, the minimum monthly repayment is approximately $7,010 per month, or $84,120 per year.
This still fits into their after-tax income (60 per cent of $140,000) but it's tight unless they keep expenses extremely low.
If they only make minimum repayments, they will pay off the loan in 30 years at age 65, paying a total of $2.52 million including $1.35 million in interest.
That is the stress the current Australian trying to buy the average home must sign up for, with or without kids.
'The working assumption in 'modern Australia' is that you will sacrifice all for a dwelling and that you work your life to pay a mortgage,' economist Alex Joiner says.
'Children are jammed into that equation as an afterthought, where parents are encouraged to get back to work ASAP and make the assumption that costly child care is an appropriate stop gap measure to facilitate this.'
How much are birthrates actually falling?
You may see a few friends starting families and acquaintances posting baby bumps but the reality is, Australia is moving backwards compared to 60 years ago.
In 1964, during the post-war baby boom, the total fertility rate (TFR) in Australia was approximately 3.1 births per woman.
That contributed to rapid population growth during the latter half of the 20th century, where Western powers enjoyed an era of relative peace compare to the 50 years preceding.
It was coupled with an unprecedented economic boom, largely driven by banking schemes and the rapid development on technology which helped trade and business.
By 1984, the TFR had decreased to around 1.9 births per woman, indicating a substantial decline over two decades. This reduction was influenced by various factors, including increased participation of women in the workforce.
In 2004, the TFR further declined to 1.77 births per woman. This period saw continued trends of delayed child-bearing and smaller family sizes, but still only marked a slight decline over the 20-year period.
The most recent data from 2023 indicates that the TFR has reached a record low of 1.50 births per woman. This is the lowest rate ever recorded, and is below the replacement level of 2.1 births per woman needed to maintain a stable population.
It's still a far cry from the global low (0.72) held by South Korea, but the trend paints a bleak picture for the decades ahead with no fix in sight.
Peter Costello's famous 'have one for Mum, one for Dad, and one for the country' line in response to growing concerns over Australia's falling birthrate and ageing population seems like a lifetime away.
But for millions of young Aussies entering the workforce, many acquiring large HECS debts just so they can become employable, the idea of 'working to build the dream' feels like a scam ... like the charade stopped years ago but everyone is still playing the same game.