Are Baby Boomers to Blame for the Housing Crisis?

By Darren Moffatt

January 3, 2024


reverse mortgage interest rates

Are baby boomers really to blame for Australia’s housing crisis? It’s a big question with no easy answers. 

In Australia, house prices have been going up a lot. From January to November 2023, they increased by 5.5%, and in the big cities, they went up even more – by 6.6%​​. The value of houses in Australia is now over $10 trillion​​, with the average house price hitting a record $761,000​​.

This blog takes a closer look at both sides of this debate. Some people think baby boomers, who grew up in a time of cheaper houses and good jobs, have made it hard for younger people to buy homes today. They say baby boomers own a lot of property and this has pushed prices up.

But others, like Professor Clive Hamilton, say it’s not fair to blame baby boomers. They argue that every older generation saves money and buys property, and that’s not something new or wrong.

This blog will explore different views and facts to understand this complex issue better. Whether you’re a senior, a baby boomer, or just interested in the housing market, we’ll provide clear insights into this important debate. Let’s dive in and find out more.

The Impact of Baby Boomers on Today’s Housing Market 

The role of baby boomers in shaping Australia’s current housing market is substantial and multifaceted. Let’s break down their influence:

Home Ownership and Market Entry Wealth Accumulation
Baby boomers have the highest rate of home ownership in Australia, having entered the market when houses were more affordable. This allowed them to benefit from the significant appreciation of housing prices over the decades. Many boomers have also invested in additional properties​​. During the COVID-19 pandemic, older Australians, particularly those over 65, saw a significant increase in savings, largely due to government stimulus packages and reduced spending. This increase in wealth was mostly driven by the rise in value of owner-occupied homes. As a result, half of the population, predominantly homeowners, now accounts for 95.4% of Australia’s net wealth​​.
Impact on Younger Generations Investment Properties and Rent Increases
The financial advantages enjoyed by baby boomers have contrasted sharply with the experiences of young Australians. Rapid interest rate increases have severely impacted those with mortgages, particularly Generation X and Millennials. Increased mortgage payments, combined with inflation and a higher cost of living, have eroded disposable incomes for younger generations. Renters, mostly younger people, are also facing some of the fastest rent increases on record, further limiting their financial capabilities​​. A significant number of baby boomers, owning investment properties mortgage-free, are profiting from the rising rents. This trend has contributed to a disparity in the housing market, where older generations are largely unaffected by the financial strains faced by younger Australians​​.


In summary, baby boomers have had a profound impact on today’s housing market in Australia. Their high rate of home ownership, wealth accumulation, and investment patterns have significantly influenced market trends, creating a challenging environment for younger generations trying to enter the housing market.

[ Related Post: How Baby Boomer Parents Gift Kids a Home Deposit with Reverse Mortgage

In Defense of the Boomers

Professor Hamilton from Charles Sturt University thinks it is unfair and wrong to blame baby boomers for the Australian housing crisis. He says it’s become almost like a crime just to be born after World War II​​. The professor points out key arguments

  • Many baby boomers are financially supporting their children, with significant wealth transfers planned for the future. This challenges the notion of them being selfish or greedy​​.
  • A considerable number of grandparents, often baby boomers, are providing childcare, helping their own children save on costs and manage work-life balance​​.
  • The baby boomer generation is not homogeneously wealthy. There’s a wide range of financial situations within the generation, from wealthy to struggling with homelessness, particularly among women over 55​​.
  • Blaming baby boomers diverts attention from broader systemic issues that contribute to housing and economic inequalities. The real issue lies in the political and economic systems that perpetuate these disparities​​.

He’s worried about this trend of blaming older Australians. He thinks it’s a kind of unfair criticism or ageism. For example, thinking all older people are rich and selfish can be really hurtful. Imagine a 60-year-old woman, without a job because of ageism, living in her car. That’s a tough situation, and it’s not because she’s been greedy or selfish​​.

Lastly, Professor Hamilton believes that this whole argument about generations is creating more social division. He thinks we should focus more on the actual political and economic systems that lead to inequality, rather than blaming one generation or another​​.

Economic Comparisons: Baby Boomers vs. Millennials 

When we look at the economic situations of baby boomers and millennials in Australia, we see some striking differences:

Aspect Baby Boomers (Aged 25-35 in 1976-1986) Millennials (Aged 25-35 in Recent Years)
Income and Wealth Less wealthy than millennials at the same age. 51% better off than Gen Xers, 91% better off than boomers at the same age​​.
Housing Affordability 60% homeownership in 1976. Homeownership fell to 37% by 2017-18​​.
Employment Trends 40% of women in paid work (1978), majority in blue-collar jobs. 57% of women in paid work (2018), shift to white-collar jobs​​.
Health and Lifestyle Longer life expectancy but less health awareness. Higher life expectancy, more health and mental health awareness​​.
Education Less access to tertiary education. Significant increase in tertiary qualifications​​.
Safety and Security Higher rates of crime and road fatalities. Reduced crime rates, increased road safety​​.
Social and Community Engagement More community involvement and social connections. Decreased community involvement, fewer social connections​​.
Environmental Changes Less immediate impact from climate change. Facing severe environmental challenges like extreme heat and bushfires​​.


These comparisons show that while millennials might be better off in terms of income and education, they face unique challenges in housing affordability, wealth distribution, and environmental issues. The changes in employment, health, and social dynamics also paint a complex picture of the differing economic situations across generations.

Practical Solutions for Baby Boomers and Millennials 

In the face of the housing crisis, it’s easy to get caught up in the blame game, pointing fingers at different generations for the current state of affairs. 

However, a more constructive approach is to focus on the solutions available that individuals can implement, leveraging personal effort and resourcefulness. 

Both baby boomers and millennials have a range of options to navigate and even thrive in this challenging market. 

Here are ten personal strategies that don’t rely on economic or government intervention:

1. Co-Housing or Shared Living Arrangements: Embrace co-housing or shared living spaces. Baby boomers can rent out parts of their homes, and millennials can find affordable living arrangements.

2. Downsizing or Rightsizing: Baby boomers can consider downsizing to smaller homes, reducing living costs and freeing up larger properties for younger families.

[ Related Post: Downsizing Contribution Rules: 5 Things You Need to Know ]

3. House Hacking: Millennials might purchase properties with multiple units to rent out, helping cover mortgage payments.

4. Saving and Investing Wisely: Both generations can focus on smart financial planning and diverse investments.

5. Community Building and Support Networks: Build and rely on community networks for resources and housing opportunities.

6. Flexible Living Solutions: Explore affordable options like tiny homes, modular homes, or mobile homes.

7. Lifestyle Adjustments for Affordability: Make lifestyle changes to save money, such as living in less expensive areas or adopting minimalism.

8. Intergenerational Exchange and Support: Exchange services like tech assistance or childcare for housing support.

9. Continued Education and Skill Development: Invest in education and skills to enhance job opportunities and income.

10. Reverse Mortgage: For baby boomers, a Reverse Mortgage can be a viable option. It allows them to access the equity in their home without having to sell it, providing additional income to support their retirement while still living in their home.

Each of these strategies requires personal commitment and adaptability. By focusing on what can be done individually, baby boomers and millennials can find creative and practical ways to improve their housing situations without solely relying on external factors.

Learn more about Reverse Mortgages here. 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before you make any decision.

  • What a load of shit the defence is for Boomers. I dont know one boomer that is providing financial support for kids, nor have I EVER. This is the generation that bought up latch key kids. They didnt give a shit. To say that there was more crime in their day WTF ever. Less access to education, utter nonsense. We just have more but useless institutions now. Dodgy RTO’s formed on boomer watch. And of course Genx was their flunkies the first generation they peered down their nose at, and now doing it to geny and z. Nasty, selfish and greedy sums them up.

  • {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}