40 years of change

[Tamara (Homes Down Under)]

Very interesting. When it comes to property the power of hindsight!

 

40 years of change: What we’re paying way more for

 

 

 

 

 

 

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• 3 days ago February 26, 2015 10:45AM
  

 

 

This 2-bedroom house in Blackburn, Victoria sold for $616,000, just above the median for Melbourne. Source: Supplied

 

 

 

IF YOU were alive in 1975, it probably doesn’t feel like it was that long ago.

 

In 1975, the Vietnam War ended; Medibank, Australia Post and Telecom (now Telstra) were formed; and Gough Whitlam was sacked.

That was all 40 years ago.

Much has changed in the four decades since those momentous events. Gen Ys, Gen Zs and Generation Alphas have been born. The internet, digital media, smartphones and social media took over our lives. Multiculturalism became a reality with Australia now a rich tapestry of different cultures.

Back then, we watched Jaws. Now, we watch The Lego Movie.

1975 was all about Jaws. Source: Supplied

 

 

 

In 1975, the Australian population was 13.7 million people while in 2015 we’re nearing 24 million. The median age in the country was in the late 20s while today it’s 37.3.

But what else has changed? McCrindle Research has crunched the numbers:

EARNINGS

In 1975, the average full time earnings were $7618. Today, it’s almost 10 times more at $72,000.

We earn 10 times as much as we did in 1975. Source: Supplied

 

 

 

BREAD

Back then, a loaf of bread cost 24 cents. Today, it costs $2.84 — we’re talking about proper bread here, not the 85 cents stuff.

Bread costs almost 12 times as much today. Source: Supplied

 

 

 

MILK

One litre of milk used to cost 30 cents. Now, it’s closer to $1.45 a litre.

Milk costs five times as much. Source: Supplied

 

 

 

NEWSPAPER

The paper used to set you back 12 cents. Today, you’ll pay $2.50, about 20 times more.

Newspapers are way more expensive than before. Source: News Limited

 

 

 

PETROL

You probably think petrol is now dirt cheap at $1.20 a litre after world oil prices tanked recently. Well, in 1975, petrol was 57 cents a litre. It’s only just over double the cost.

You think your petrol is cheaper now? Bet 57 cents a litre sounds even better. Source: News Corp Australia

 

 

 

HOUSING

Property is where the really scary figures come out.

In Sydney, the average house cost $28,000 in 1975. Today, it costs $850,194. That’s 30 times as much as it used to be. Your 10-times as much annual earnings isn’t looking too great right now, huh?

This 2-bedroom terrace in Erskineville sold for $837,000, just below the Sydney median. Source: realestate.com.au Source: Supplied

 

 

 

Melbourne is even worse, at 31 times the cost of 1975. Back then, the average house was $19,800. Now, it’s $615,068.

In Brisbane, it’s 27 times higher from $17,500 to $473,924.

In Adelaide, it’s 28 times higher from $16,250 to $459,258.

In Perth, it’s 32 times higher from $18,850 to $604,822.

In Canberra, it’s 21 times higher from $26,850 to $573,326

In Hobart, it’s 21 times higher from $15,200 to $322,274.

 

 

YOUNG PEOPLE

Demographer Mark McCrindle said that while in some areas, the cost has been maintained but it’s in our demand and supply model of housing where the cost has blown out.

“There are 10 million more people than there was 40 years ago,” he said. “Households are a bit smaller so we need more homes than we used to and there are also foreign buyers and investors as well. So there’s a lot more demand than supply.”

Mr McCrindle said Australians should expect the rising cost of housing to continue and that young people will be in a much tougher situation than their parents were.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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[Ktee]

What a great thread. I think property is a good investment especially in the right areas. I can remember a packet of crisps for 2p, a pint of beer 54p, oh dear I'm showing my age.

[NicF]

I remember being able to get on the bus for 2p when I was a kid. And 10p mix would get you quick a few sweets. 10p probably wouldn't get you much at all these days. Property prices are stupid though. At some point houses are just going to stop being affordable for many people.