Tyler Bakes hopes to buy a home in Hobart, but says that dream has so far proven elusive.
The 25-year-old renter says saving for a deposit has been an arduous task.
"I've got a quite a few people that I know that finding it really difficult to even picture a future where they have a house, where they own a home," Mr Bakes says.
Mr Bakes considers himself lucky to have found a rental he can afford, sharing a three-bedroom house with two couples.
He's currently receiving JobSeeker, as he hunts for work in the social services sector after finishing his course at TAFE, but worries even with work, his goal may be out of reach.
"If you think about the the way that wages are working in Tasmania … and then you've got skyrocketing housing prices — it is very difficult to get by," Mr Bakes says.
Average weekly earnings in Tasmania remain the lowest in the country.
That's particularly the case in cities where house prices are booming but wages aren't as strong.
The National Housing Finance and Investment Corporation found affordability was worst for potential first homebuyers in Hobart and Sydney, with only 10 to 20 per cent of properties in those markets affordable for the bottom 60 per cent of income earners.
In Hobart, CoreLogic figures show home values have surged 60 per cent in five years, and the rental market is very competitive, meaning that securing affordable housing is a challenge.
Ownership in reach, with help
Sarah Old can relate to the feeling that owning a home is out of reach.
The 35-year-old public servant is single and found herself unable to save enough to keep up with Hobart's rapidly rising house prices.
"Each time I thought that I'd be ready soon … I'd meet with a banker and it seemed that the benchmark had moved at least $15,000 to $20,000."
She took the option only available to those with parents who were able to get on the property ladder themselves.
Ms Old's parents are providing the deposit for a new home that's under construction, while she'll be responsible for the mortgage repayments.
But in a twist on the typical 'bank of mum and dad' scenario, Ms Old's parents will live in the new home with her, and she will provide caring support, as they both suffer with health issues.
"Building, that just became for us a smarter financial decision, and being able to make it accessible for mum and dad, that was probably another key factor," she said.
Owning a home 'not an option' for many
The fact young people feel home ownership is a 'pipe dream' wouldn't come as a surprise to most Australians.
The Australia Talks national survey found 65 per cent of Australians in general think owning a home isn't really an option for most young Australians anymore.
While the survey found younger people are more likely to hold that view, more people agreed owning a home isn’t an option for young Australians than disagreed across all age brackets.
And the feelings around home ownership are reflected in reality.
The Australian Housing and Urban Research Institute (AHURI) used census data to examine the trend.
While the overall home ownership rate has remained largely stable, at 67 per cent in 2016, compared to 68 per cent in 1976, Australia's ageing population is disguising changes within different demographics.
Home ownership rates among 25 to 44 year olds declined sharply between 1986 and 2016.
As a result, AHURI researchers see little chance of Australia sustaining home ownership at current levels.
The report forecasts home ownership among 25 to 55 year olds to decline to just above 50 per cent by 2040.
As home ownership falls among younger Australians, independent economist Nicki Hutley says there's a wealth transfer underway, from parents who own a home, to their children.
"There are so many people out there who don't have enough for their own retirement, let alone being able to help their kids, so it's the privileged few, helping the privileged few."
Is it actually harder now than it used to be?
With home ownership feeling out of reach to many, it's no surprise 65 per cent of Australia Talks survey respondents also think it's harder for young people to get by than it used to be.
Just 22 per cent say young Australians today will be better off than their parents.
The debate over who's had it worse is a source of intergenerational tension, particularly in housing market discussions.
Older generations point to the sky-high home loan rates of the 1980s, which added to the cost of their mortgage repayments.
Millennials argue that the massive run up in house prices make saving a deposit an insurmountable task.
Housing affordability researcher Rachel Ong ViforJ agrees with the millennials.
"Say, three or four decades ago, the house price to income ratio was sitting at around 3.5," the Curtin University professor says.
Now, Professor Ong ViforJ says house prices are around six times incomes nationally — and in Sydney, the ratio is more than eight times.
"It's absolutely clear that it's easier make the repayments now, in fact, interest rates are so low, most people are better off buying than renting," Ms Hutley says.
"The big challenge… is getting together the required deposit."
With the average house price in Sydney over $1 million, Ms Hutley estimates even a 10 per cent deposit could take a typical couple a decade to save.
"It's really beyond most people's reach."
The Australia Talks National Survey asked 60,000 Australians about their lives and what keeps them up at night. Use our interactive tool to see the results and how your answers compare.
Then, tune in at 8:00pm on Monday, June 21 to watch hosts Annabel Crabb and Nazeem Hussain take you through the key findings and explore the survey with some of Australia's best-loved celebrities.
