In the hyper Australian housing market Jennifer Wells of Metro News describes real estate developer Tim Gurner’s unfortunate and thoughtless remarks about why millennials are not buying housing. His words “When I was trying to buy my first home, I wasn’t buying smashed avocado for 19 bucks and four coffees at $4 each,” were quoted in an interview with Australian media .
“Note that in March the Australian Bureau of Statistics compared the five-year 70-per-cent increase in Sydney house prices — that’s not a typo — to average wage increases of 13.2 per cent across the same period. The median house price in Sydney was just shy of $1.2 million (Australian dollars) in April. And a local point of reference: this month the Internet-cost-of-living data base NUMBEO found that getting by in Sydney is 28.8 per cent more expensive than Toronto.”
“In Sydney, Melbourne, Toronto and Vancouver housing affordability has increasingly created a class divide. Today it’s less about earned income and more about access to capital — the inheritance, the well-off parent. “People can save, but not enough to get into the market that is always moving up. ”
In Australia the Australian Prudential Regulation Authority limited lending institutions for interest only lending to thirty per cent of all new residential mortgages. On the other hand, the Australian government announced a foreign buyer’s tax on empty houses, as well as a way for new buyers to save funding for first purchases.
For seniors 65 and over, the Federal government has come up with a scheme to boost the householder pension if they sell their principal residence.Interestingly, the government is also trying to appeal to potential “downsizers” — home owners aged 65 and over — with a plan that would boost a householder’s pension should the homestead be sold. Freeing up housing stock is the hoped for outcome.
This housing problem is certainly not related to avocado toast or any fancy drink-but that’s a symptom of not looking at the bigger picture. Affordability, accessibility, and a range of housing types are necessary to move forward. Millennials did not create this challenge. “And it shouldn’t be their task to fix it. If smashed avocado on toast is a comforting way to salve the disappointment of not seeing home ownership in one’s future, it’s actually a small price to pay.”
In Australia the Australian Prudential Regulation Authority limited lending institutions for interest only lending to thirty per cent of all new residential mortgages. On the other hand, the Australian government announced a foreign buyer’s tax on empty houses, as well as a way for new buyers to save funding for first purchases.
For seniors 65 and over, the Federal government has come up with a scheme to boost the householder pension if they sell their principal residence.Interestingly, the government is also trying to appeal to potential “downsizers” — home owners aged 65 and over — with a plan that would boost a householder’s pension should the homestead be sold. Freeing up housing stock is the hoped for outcome.
This housing problem is certainly not related to avocado toast or any fancy drink-but that’s a symptom of not looking at the bigger picture. Affordability, accessibility, and a range of housing types are necessary to move forward. Millennials did not create this challenge. “And it shouldn’t be their task to fix it. If smashed avocado on toast is a comforting way to salve the disappointment of not seeing home ownership in one’s future, it’s actually a small price to pay.”
Well… millennials are probably behind these extravagant products:
https://youtu.be/0uMPymBFq6w
https://youtu.be/i3XpP6qdKac
For many people, accepting that they will never own a home happened decades ago.
Now about avocado on toast. I’ve never seen it in a restaurant for any price. You can make it at (your rented) home for way less.
The first part of your statement is not true for most Canadian cities or millenials. It is only true for the most expensive parts of Vancouver, W-Van or Toronto. Plenty of affordable housing in MetroVan or GTA, just not the high end home with a large yard close to beaches or downtown. Do a search on http://www.realtor.ca for townhouses and condos under $400,000 and you will see quite a few.
The latter part of your statement is true. As such I too eat an avocado toast at home usually only.
Housing, like eating food, is a personal choice and if you chose to rent that is totally fine. But keep in mind it is a choice. Other choices exists.
I was thinking more of income level. For some people they were never in a position to buy a home and gave up any idea of that decades ago. They probably think it’s cute that richer people now think it’s an outrage that they aren’t able to now.
Nelson and the seagull has great avocado and toast. Bread made in-house.
Earls has avocado toast – and that’s completely mainstream…
Not the $19 in Australia – but $11 – which also seems extravagant
(given that a whole avocado is $1.99 (not the half or less you get in a restaurant), and a bread maybe 50 cents)
https://earls.ca/locations/fir-street/menu/kitchen
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Reblogged this on Sandy James Planner.
I completely agree with you. There is a lot of talk from social commentators and baby boomers claiming that millenial’s are wasteful with their earnings. Basing the housing problem solely on smashed avocado breakfast’s and brunches is a very limiting way to look at the issue, when looking at the bigger picture. Although young Millenials are treating themselves to these ‘hipster’ breakfast cafes, to say that this is the sole cause of them not being able to afford a property is a bit far fetched. By claiming that all millennial are ‘wasteful’ is also limiting, because it assumes that all millenials are eating at fancy café’s for breakfast every morning when in fact only a minority of them are doing this. I would love for you to follow and support Bust the Housing Bubble’s campaign.