Housing Affordability Isn’t Just a Youth Issue — The Intergenerational Gap Is Widening — Sydney Auction Clearance Rate at 58%

Weekly Market Focus

When discussing intergenerational fairness, the issue is often framed as a simple divide between younger Australians and the “baby boomer” generation. However, research from the Actuaries Institute suggests the real challenge is not a single generational conflict, but a broader structural shift. While overall living standards have continued to improve, the pathways to wealth accumulation are changing, leading to increasingly uneven opportunities across age groups.

At the core of this inequality is the long-term rise in asset prices and the growing barriers to entry. Over the past two years, wealth gains among those aged 65 to 74 have significantly outpaced those of younger cohorts, largely because they already hold housing and financial assets, allowing them to benefit from rising property and equity markets. By contrast, younger individuals who have yet to enter the asset market are effectively excluded from this cycle of wealth growth. This marks a shift in which wealth is no longer primarily driven by income accumulation, but increasingly determined by whether one is already “in the market.”

The housing market is the most visible expression of this structural change. High property prices and rising rents have created a “lock-in effect”: on one hand, rental costs erode savings capacity, making it harder for younger households to accumulate a deposit; on the other, rising asset prices continue to push entry thresholds higher. At the same time, fiscal policy has, often indirectly, amplified these disparities — with increased spending on older cohorts and the use of taxation and debt financing mechanisms effectively shifting the burden onto the working population, reinforcing imbalances in intergenerational resource distribution.

More fundamentally, this structural inequality is reshaping how the economy and society function. If home ownership shifts from an attainable goal to a privilege for a shrinking group, the consequences will extend beyond widening wealth gaps to include reduced social mobility, weaker consumption and fertility trends, and potential long-term impacts on productivity. Already, a segment of older Australians without housing assets faces heightened risks of poverty and instability — a trajectory that could become more widespread in the future. As the federal budget approaches, the key question is no longer whether intergenerational inequality exists, but whether policy is willing to address its root causes — including the tax system, housing supply, and the mechanisms of asset distribution.

Last Week’s Auction Results

Sydney: A total of 1,069 properties were taken to auction, with results reported for 621 properties. Of these, 362 were sold, resulting in a clearance rate of 58%. The total auction value reached AUD 386,833,662, with a median price of AUD 1,516,750.

Melbourne: A total of 1,250 properties were taken to auction, with results reported for 878 properties. Among them, 519 were sold, achieving a clearance rate of 59%. The total auction value amounted to AUD 401,054,097, with a median price of AUD 910,000.