Nostalgia can be a bittersweet pill to swallow, especially when it comes to reflecting on the ever-changing landscape of the Australian housing market. Recently, a trip down memory lane has left many Australians feeling more bitter than sweet as old newspaper advertisements showcasing the incredibly low house prices of yesteryears have resurfaced, sparking a fiery debate across the nation.

The vintage ads, dating back to the 1980s and 1990s, were shared on the Humans of Eastwood Facebook page, accompanied by a tongue-in-cheek caption that read: 'Back in the day when you could buy the entire street.' These relics of the past featured properties in upmarket Sydney suburbs at prices that would make any current house-hunter's eyes water. A Ryde property was listed at a mere $57,950 in 1985, and a Marsfield townhouse was going for $159,000 in 1992.

Vintage ads sparked debate: Low property prices from the 1980s and 1990s. Credit: Shutterstock

The post, initiated by Ryde councillor Justin Li, has divided Australians along generational lines. Some older commenters were quick to point out the financial challenges of the time, including the 18 per cent interest rates that plagued the late 1980s. 'Gee, so naive. Repayments were high. Wages were low. Interest rates were high,' one woman remarked. 'It never has been easy for the average person to buy property.'

However, younger Australians have countered this argument by highlighting the disparity between wages and house prices. Back in the 1980s, despite the high-interest rates, owning a home was more attainable when considering the ratio of wages to house prices. 'It was more doable even with kids back then despite the high interest rates. Today, wages to house price, especially in Sydney, is almost impossible,' a younger man pointed out.

The debate is fueled by the stark contrast between past and present property values. For instance, a 1985 Raine and Horne advertisement listed a four-bedroom house in North Ryde for $111,950, which was only 4.3 times the average pay of $20,649 with a 20 per cent deposit. Fast forward to 2024, and North Ryde's median house price has skyrocketed to $2.358 million, a staggering 19 times the average full-time wage. Putney, once a more affordable waterfront suburb, now boasts a median house price of $3.43 million, which is 27.9 times the typical pay.

The situation is similar in Beecroft, where a 1992 ad from Professionals KG Hurst listed a house at $285,000, 7.5 times an average salary of $30,519. Today, Beecroft's median house price stands at $2.44 million, or 20 times an average full-time salary.

Councillor Li expressed concern for the future, stating, 'It's getting harder all the time for young people to buy their first home because of increasing property prices, interest rates, and cost of living expenses generally. It's unlikely to get any easier in the future, and tomorrow's generation will probably say the same about today's generation.'

The conversation around these old ads is more than just a debate over numbers; it's a reflection of the evolving Australian dream and the increasing difficulty of achieving it. As property prices continue to climb, the gap between the haves and the have-nots widens, leaving many to wonder if the dream of homeownership is slipping away for future generations.

Key Takeaways

• Old newspaper advertisements showing low property prices from the 1980s and 1990s have sparked debate among Australians on social media.
• Some argue that despite lower property prices in the past, the high interest rates and relatively lower wages made buying property difficult.
• Others point out that the ratio of wages to house prices was more favorable in the past, making home ownership more attainable even with high interest rates.
• The current median house prices in Sydney's suburbs have skyrocketed, with locations like North Ryde and Putney reaching prices many times the average full-time wage, suggesting increased difficulty for young people to buy their first homes.

Members of the Seniors Discount Club, we invite you to share your thoughts and experiences. How do you feel about the dramatic changes in the housing market since the 1980s and 1990s? Do you have stories of your own property journeys that could shed light on this heated debate? Let's discuss in the comments below and perhaps offer some wisdom to the younger Aussies striving to own a piece of this great land.

 

[Knell]

Agree with the numbers. Younger generation need to have a high paying job.