New Analysis has revealed that hopeful Sydney homebuyers are paying substantially more for properties relative to the cost of everything else than any recent generation before them, rubbishing claims that baby boomers had it harder because of higher interest rates.

A PropTrack study has shown that property prices, once adjusted for inflation, were four times higher than in 1980, with a typical house costing $65k in 1980, which equates to $338k today. Far lower than the $ 1.47 million Sydney houses are going for in 2025.

The research measured the prices over each decade from the 1980s until now to compare, showing housing costs were markedly cheaper compared to now.

REA Group economist Eleanor Creagh is quoted as saying

“Every generation has its own unique struggles, but on the whole, today’s buyers are navigating a fundamentally different landscape with structural housing barriers baby boomers did not have.

“The deposit and stamp duty burden is much higher, affordability is more stretched, and prices have vastly outpaced wage growth.”

There are also other reasons that can be attributed to the increase in property prices over time, including cultural shifts- the rise of dual-income families, lower interest rates, which boosted buying power. 

Rising building costs have seen property prices increase.

The increase in population, with a concentration in City markets, also impacts demand and property prices.

Over time, it is harder for younger generations to save deposits and get a start in the property market. There is a need to make use of government incentives, or family support, where available, to be able to take that first step to home ownership.