Australian Youth Home Ownership at 80-Year Low, August 26

Home ownership among 25-34-year-olds in Australia has fallen to its lowest level in 80 years, according to Anglicare Australia’s Falling Behind report released August 25. Fewer than 40% of young Australians in this age group own their homes, matching rates from the 1940s. The charity attributes the collapse to tax settings that favour property investors, rents that have soared 80% in some regions over five years, and a social security system that pays young people less than other cohorts despite identical living costs.

What the report found

Anglicare Australia’s Falling Behind report, released August 25, 2026, found that home ownership among 25-34-year-olds has fallen to an 80-year low. Fewer than 40% of young Australians in this age bracket own their homes, a rate equivalent to the 1940s before the post-war housing boom. The report highlights intergenerational inequality, with older Australians appearing insulated from economic pressures while younger cohorts face rising costs and stagnant wages relative to house prices.

The cost of living squeeze

Rents in some parts of Australia have soared 80% over the last five years since COVID-era rent freezes were lifted, according to property data company Cotality. Young people are entering a workforce that is more insecure, with lower wages proportional to house prices and living expenses. Anglicare Australia executive director Kasy Chambers told SBS News that support lines are dominated by stress over housing security and related bills. Chambers noted that rent, groceries, and electricity are not cheaper for young people, yet they receive the lowest welfare payments in the system.

Youth Allowance falls below poverty line

The maximum fortnightly payment for a single person with no children on Youth Allowance is $677.20, a rate that sits below the poverty line, JobSeeker, and the aged pension. Kasy Chambers called on the federal government to review how wealth is taxed, saying young people are expected to survive on the lowest payment despite facing identical living costs to older cohorts. Chambers welcomed the Albanese Government’s efforts to remove tax breaks for investment income but said more measures were needed to even the playing field.

Tax settings favour older investors

The Anglicare report found that while older Australians’ wealth has significantly increased over time, their share of income tax has not. Older cohorts earned wages during a stable period in the job market and amassed wealth from investments which are taxed less severely than wages. Young people are absorbing the impact with lower wages proportional to house prices and cost of living, affording less opportunity to amass wealth. Chambers argued that taxing wealth the same way as income would prevent wealth concentration that makes it difficult to redistribute later.

Final Thoughts

Young Australians face the first generational risk of falling behind their parents in wealth accumulation tied to housing. Policy changes to tax settings, welfare payments, and housing supply will be needed to reverse the trend.

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