Very interesting. When it comes to property the power of hindsight!
40 years of change: What weíre paying way more for
- 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 doesnít 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 weíre nearing 24 million. The median age in the country was in the late 20s while today itís 37.3.
But what else has changed? McCrindle Research has crunched the numbers:
In 1975, the average full time earnings were $7618. Today, itís almost 10 times more at $72,000.
We earn 10 times as much as we did in 1975. Source: Supplied
Back then, a loaf of bread cost 24 cents. Today, it costs $2.84 ó weíre talking about proper bread here, not the 85 cents stuff.
Bread costs almost 12 times as much today. Source: Supplied
One litre of milk used to cost 30 cents. Now, itís closer to $1.45 a litre.
Milk costs five times as much. Source: Supplied
The paper used to set you back 12 cents. Today, youíll pay $2.50, about 20 times more.
Newspapers are way more expensive than before. Source: News Limited
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. Itís 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
Property is where the really scary figures come out.
In Sydney, the average house cost $28,000 in 1975. Today, it costs $850,194. Thatís 30 times as much as it used to be. Your 10-times as much annual earnings isnít 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, itís $615,068.
In Brisbane, itís 27 times higher from $17,500 to $473,924.
In Adelaide, itís 28 times higher from $16,250 to $459,258.
In Perth, itís 32 times higher from $18,850 to $604,822.
In Canberra, itís 21 times higher from $26,850 to $573,326
In Hobart, itís 21 times higher from $15,200 to $322,274.
Demographer Mark McCrindle said that while in some areas, the cost has been maintained but itís in our demand and supply model of housing where the cost has blown out.
ďThere are 10 million more people than there was 40 years ago,Ē he said. ďHouseholds are a bit smaller so we need more homes than we used to and there are also foreign buyers and investors as well. So thereís a lot more demand than supply.Ē
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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