Sunrise host David Koch unleashes with a brutal message that every baby boomer needs to hear and busts a common housing myth
- Koch said it was tougher to buy a home in 2023
- He compared financial situations from now to 80s
- House prices have soared but wages haven’t kept up
Sunrise host David Koch has explained why younger Australians have it tougher than older generations when it comes to buying a home.
The breakfast TV host analysed the financial burdens weighing on those trying to buy a home in the late 1980s against those entering the property market now.
The home loan rate in 1989 to 1990 was at 17 per cent, compared to the six per cent rate from today.
However, Koch said due to the average price of a house skyrocketing and wages not rising steeply enough to make up for it, Aussies trying to find their dream home in 2023 were far worse off.
‘Back in the 80s, the average cost of an Aussie house was $70,000, now it’s $700,000 – ten times more expensive,’ he said.
David Koch has explained why younger Australians have it tougher than older generations when it comes to buying a home
‘A 20 per cent deposit has gone from $14,000 to $140,000 but wages have not kept pace.’
The Sunrise host and financial guru explained how in the 1980s the average salary was $19,000 and this figure had grown to $90,000 in 2023.
‘So in the 80s, the price of a house was four times the average person’s income,’ he said.
‘In 2023, it’s eight times the average Aussie salary.’
Koch said today’s current home loan rate was causing ‘the same pain’ as those trying to buy a home in the 1980s.
‘And with rates set to go higher, it has never been tougher to meet a mortgage,’ he said.
‘So hopefully that puts that myth aside.’
It comes after a survey found that one in three young Australians are missing their mortgage repayments.
The Reserve Bank of Australia’s 10 consecutive interest rate rises since May are biting with Finder’s monthly Cost of Living report showing 31 per cent of Generation Z borrowers, born from 1995 onwards, missing a mortgage repayment during the past six months.
By comparison, 11 per cent of Generation Y – aka Millennials – had missed a repayment, while 8 per cent of Generation X borrower were in that position.
‘Increases in housing costs are having a higher impact on Australian households than any other metric,’ the Finder report said.
‘Younger generations were far more likely to report financial difficulty in managing their mortgage repayment.’
The home loan rate in 1989 to 1990 was at 17 per cent, while now it sits at six per cent. Koch said due to the average price of a house skyrocketing and wages not rising steeply enough to make up for it, Aussies trying to find their dream home now are far worse off
David Koch is pictured with his Sunrise cohost Natalie Barr
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