"Stop the blame game": Kochie slams young Aussie homebuyers
David Koch has called on young Aussies to stop blaming baby boomers for their financial woes in his latest newsletter for finance website Compare The Market.
The former Sunrise host and current economic director for the finance company said that young Aussies need to “stop the blame game” in regards to the housing crisis, arguing that baby boomers should be called the "scapegoats" instead.
He explained that young homebuyers believe that his generation has “put them on the chopping block” despite the “Bank of Mum and Dad” sitting sixth largest home lenders.
“Not enough houses? Boomers are hoarding them. Not enough home units? Boomers throw down cash before first-time buyers can say boo!” he wrote.
He said that while he understood that young Aussies are struggling to buy a home, as the median price of one in Australia is currently 14 times the average annual income, in 1990 it was five times the average annual income.
“When we bought our homes, prices were more accessible, and while interest rates were sky-high, our wages were aligned with housing costs.”
“Housing markets have inflated, wages have stagnated, and opportunities for younger generations are considerably diminished.”
He added that government policy is largely to blame for the dire housing situation, and that the rise in property costs was not because they wanted to hang younger Aussies out to dry, but because the economy favoured real estate as a safe, long-term investment.
“Governments have simply not planned for either the generational housing change or the big increase in migration to ensure enough properties have been built to meet demand,” he wrote.
He then referenced the State of the Housing System report which found that Australia will fall 40,000 units short of its 2029 new home construction target of 1.2m million.
Kochie defended the boomers, saying that not many of them could be considered as the "wealthy, elite stereotype we often see in the news”, as many of them had to work hard to become a homeowner.
“It's essential to recognise this diversity and avoid vilifying the entire generation,” he wrote.
Kochie called on young Australians to "stop the blame game" and instead of "pointing fingers" they should focus on “how we can work together” to make housing affordable again.
“A bit of compassion and creative thinking could go a long way. Otherwise, the scapegoats and sacrificial lambs of the world will continue their bleating,” he wrote.
Images: Realestate.com.au