House prices have created a ‘lost generation’

The despair of a younger generation with little prospect of getting on the property ladder is aggravated by the knowledge that their parent's generation had it so much easier.

Feelings matter in economics, and a person’s position within the housing market tends to determine how they feel about the past 20 years of house price inflation.

For Australians not resigned to renting their homes, the feelings progress something like this:

– For members of ‘Gen Y’ (now aged between 20 and 37), there is often despair that “I’ll never save a deposit for a home of my own!”;

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