Australia: Housing costs drive young adults toward doomspending

Young Australians are increasingly engaging in “doomspending,” prioritizing immediate luxuries over long-term savings due to record-high housing costs and economic instability. As traditional financial milestones like homeownership feel increasingly unattainable, many young adults are choosing to spend on small comforts, such as specialty coffees and trending consumer goods, rather than attempting to save for deposits.

Research indicates that housing affordability in Australia has reached a historical low. The median house price in combined capital cities is $1.1 million, while the median unit price is $738,778. In Sydney, the average homebuyer must save for more than nine years to afford a deposit. Reports suggest that a household earning $125,000 a year can afford only 12% of homes for sale nationally, a figure lower than the 14% recorded during the 2008 financial crisis. For households earning $76,000, the affordability rate is just 2%.