Page 8 - Wealth-Adviser-Issue-119 (FWP)

ISSUE 119
SEPTEMBER 2025

transfers between generations are now a major determinant embrace flexibility and resilience.
of housing access—a marked departure from earlier decades. Countries in Europe, and others further afield, treat
The National Housing Supply and Affordability Council’s public renting and social housing as respected, secure, and
2025 report highlights that, for low- and middle-income often desirable options rather than fallback solutions. The
earners under 40, rental stress is persistent, mortgage-free stigma against long-term renting is a recent phenomenon
ownership is falling, and delays to household formation and in Australia; prior generations looked to public housing and
family planning are rising. rentals without shame or anxiety. Adapting to new realities
may require embracing these alternatives and advocating
What Can Be Done? Policy, Protest, and Personal for policies that ensure good rental experiences, stable
Choices tenancies, and financial mobility, even without a home of
Facing this daunting divide, young Australians have two one’s own.
broad paths: demand reform or adapt to new realities. If the
young want the system to change, they need to drive the Conclusion: The Path Forward – Choice,
change. Protests, advocacy, and voting choices are becoming Advocacy and Adaptation
more focused on housing policy. Yet, as recent election Generational divides, discontent, and the limitations
cycles have shown, governments tend to avoid reforms that of politics have made it clear: the route young people take
would lower prices or disrupt existing homeowners. Many will shape our country in coming decades. While systemic
policies aim to boost supply or subsidise borrowing, but policy reform is necessary—a new and fairer housing system
often fall short of shifting the fundamentals. is both possible and necessary—the journey may be uneven,
Other countries show it’s possible to do things differ- and patience will be required. In the meantime, reassessing
ently. European countries show how public housing and life goals and embracing a wider definition of security and
tenant protections can deliver security and dignity without prosperity can help reset the dream.
the pressure of ownership. In Germany, Sweden, and the Australia faces a pivotal moment. Reform, advocacy,
Netherlands, robust social housing and tenant rights make and personal adaptation are not mutually exclusive; rather,
renting a respected option rather than a fallback, and public they are all essential components as the country reimagines
policy actively works to keep prices in line with incomes. what a “successful” adulthood can look like. Whether as
The Grattan Institute and the National Housing Supply homeowners, secure renters, or advocates for bold change,
and Affordability Council have both recommended a mix younger Australians have the power—and responsibility—to
of planning reforms, targeted tax changes, and support for shape a future where the dream is both inclusive and attain-
alternative pathways—such as cooperative ownership and able once more.
large-scale “build-to-rent” projects.
However, political inertia, lobbying, and cultural attach-
ment to ownership all conspire to slow meaningful change References
at home. • The ‘priced out generation’ and what they should do about it, Firstlinks,
2025
A New Definition of Success? Rethinking Values • Generation Rent: How Gen Z is Surviving Australia’s Housing Crisis,
and Goals Duotax, 2025
For those unable or unwilling to wait for system reform, • Housing is less affordable than ever, Grattan Institute, 2025
a second path is to reconsider what constitutes a success- • Australia’s growing intergenerational housing wealth divide, CEDA,
ful, secure adult life. If the goal of most people is to have 2023
a happy life, then they should prioritise family, friends, • State of the Housing System 2025, National Housing Supply and
health, spirituality, and contentedness over home owner- Affordability Council, 2025
ship if doing so offers a better quality of life. A realignment • Election 2025: Evaluating the housing policies, Grattan Institute, 2025
of values may be needed, encouraging young people to

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