A Shift in Home Ownership and Family Life Over the Past 30 Years
A simple satellite image of Sydney’s western suburbs reveals a stark contrast between two areas that reflect a significant change in housing over the past three decades. The image shows Cranebrook, an older suburb, and Jordan Springs, a newer one, separated by the Northern Road. This visual representation highlights how the average Australian family has lost out on the quality of life that was once more accessible.
In Cranebrook, homes built during the 1980s and 1990s were constructed on large blocks of land, often exceeding 600 square meters. These properties featured spacious backyards where children could play and even swimming pools. In contrast, the newer Jordan Springs area is marked by small, closely packed homes. On Google Earth, it's challenging to spot any grass in the backyards, as homes are nearly touching each other, making it difficult to park two cars side by side.
This shift raises an important question: where would you want to raise a family? Today, owning a home is increasingly unattainable for many due to rising property costs. Even those who manage to purchase a house in new suburbs face conditions that pale in comparison to what was available in previous decades.
During the 1980s and 1990s, many families lived in four-bedroom homes with two bathrooms, two living areas, a double car garage, and expansive front and back yards. These homes were often affordable on a single parent’s income. This was the reality for many, including myself and my peers in western Sydney.
Back then, households rarely earned more than $70,000 annually, yet they still managed to enjoy a comfortable lifestyle. However, this situation has changed dramatically over the past 25 years. Today, both parents must work full-time to afford a home or rent, often leaving children in daycare, which means they are raised by strangers.
So, how did we arrive at this point in just a few decades?
Peter Drennan, director at primara.com.au, noted that the conditions of the past made it easier for one income to suffice. He moved away from Sydney to buy a house similar to those built in the past. From the end of World War II to 2000, Australian families didn’t have to give up their backyards for community playgrounds or strata complexes.
In the late 1960s, over 70% of Australian households owned their homes, often on quarter-acre blocks with gardens, Hills Hoists, and barbecues. Some even had pools. Today, many new suburbs lack even space for a hot tub in the backyard.
Every time I drive through a newly built suburb like Jordan Springs, I’m reminded of the better living conditions of the 1980s and 1990s. The way our “new” suburbs are being constructed for future generations is disheartening.
While technological advancements have made some aspects of life easier, I prefer the simplicity of having a phone attached to the wall rather than in my pocket. This aspect is often overlooked in comparative studies, as homes from 40 years ago differ significantly from today’s in terms of land size and build quality.
Houses today are often constructed to be as cheap as possible, leading to a decline in overall quality. According to analysis from Money.com.au, since 1975, the average home price in Australia’s capital cities has risen by an astonishing 3,435%. Meanwhile, average fulltime wages have increased by just 1,183%.
In Sydney, the median home price has jumped from $34,000 in 1975 to $1,627,625 in 2024, resulting in a price-to-income ratio that has nearly quadrupled. Mortgage repayments now require 143% of the national median monthly wage, compared to 44% five decades ago.
Similar trends are evident in other cities. In Brisbane, house prices have climbed by 3,801%, increasing the price-to-wage ratio from four times in 1975 to 11 times today. This means mortgage payments consume 81% of the average wage, compared to 31% in 1975. In Melbourne, the figure is even higher at 91%.
Only half of the housing market is affordable for a household earning around $172,000 annually. These statistics show how much easier it was for Baby Boomers to own homes, even if they claim otherwise. They may have faced high interest rates, but it wasn’t necessarily harder to buy a home.
The situation has changed significantly since the turn of the century. What will buying a home and the family environment look like in another 25 years? Peter Drennan believes there needs to be a fundamental change to impact house prices, but currently, no such changes are being implemented.
This makes me long for the days of the old family home, where I could hug the Hills Hoist and maybe even swing around on it again.