Young Australians who are losing hope of ever being able to afford property say attending just a handful of auctions exposes exactly who is to blame for rising prices.
If you’ve recently attended a house or apartment auction, it’s clear as day who is raising the bids far beyond what any millennial or Gen Z could afford.
And no, these are not newcomers or foreign investors with a lot of money.
The worst offenders aren’t even the so-called “mom-and-pop landlords” who spend their savings and retirement funds on rental properties.
Instead, they are looking to downsize and aggressively bid higher prices for the small homes and units once considered starter properties for young Australians.
Often ignored in debates about the housing crisis, Australian retirees with adult children who have left the nest are selling their family homes and downsizing.
My partner and I are looking to buy, and with every open house, my palms sweat with excitement and my cheeks warm with anticipation.
That was until I looked around and saw who my competition was, and those feelings were soon replaced by a cold sense of doom.
Carina Stathis attended many auctions and noticed that it was predominantly retired people looking for smaller homes who were buying the houses typically sought by first-time buyers, not foreign investors or homeowners.
There was simply no way to outbid retirees whose pockets were lined with funds from the sale of their old homes, purchased when prices were a tiny fraction of what they could sell them for decades later.
Adam Flynn, a real estate agent and self-made millionaire, said the situation is a national problem and the government should create more incentives just for first-time homebuyers.
The 43-year-old from Melbourne told FEMAIL that younger generations have little chance of outbidding their wealthy elders, except for those who receive financial help from their parents.
‘My partner and I were looking to buy, and with every open house, my palms would sweat with excitement and my cheeks would burn with anticipation… that is, until I would look around and see who my competition was, and those feelings were soon replaced by a cold sense of doom.’
Adam Flynn (pictured), a self-made multi-millionaire estate agent, said: “For first-time home buyers, it’s really hard to compete with people looking to downsize.”
“This situation is not isolated to any particular geographic location – it affects the whole of Australia,” Flynn said.
“When people get older, their lives are limited to certain neighborhoods. Their doctors, supermarkets, dentists, family and friends are all in the same area, so they are not willing to move from a place that is familiar to them.”
Flynn also noted that people are living longer and want to remain independent rather than moving into a retirement community, so downsizing is the perfect solution for them.
“What we’re finding is that older generations are looking to sell their large four-bedroom homes because the kids have moved out, the property is too big and the upkeep is too much for them,” he said.
‘So they buy a smaller two-bedroom house, but stay in the same suburbs.
“First-time home buyers find it very difficult to compete with those looking for a smaller home. For this reason, many young people go to inspections and auctions with their parents.”
Flynn warned that if millennials and Gen Z want to be competitive, they need to rely on the bank of mom and dad for support because otherwise they probably won’t have the budget to work with.
Adam warned that if millennials and Gen Z want to be competitive, they need to rely on the bank of mom and dad to support them because otherwise they probably won’t have the budget to work with (file image)
Commentators on a viral TikTok video They shared their own experiences on the subject, with many saying they would have to wait for an inheritance to be able to buy a house.
“It sounds morbid and cruel, but I can’t wait for my parents to kick the bucket. I’m going to use their money to buy the house I want,” wrote one, expressing a taboo that many young Australians increasingly feel in silence.
Another agreed, saying, “I feel exactly the same. The only way I see myself having my own home is at my mom’s current house or selling it and using the money to buy one.”
Others said they, too, have seen baby boomers purchase property without needing loans.
“I feel you, we had the same thing happen a few years ago in Sydney – baby boomers basically made the first offer and went $200,000 to $400,000 over the price tag, shutting us all out in one bid,” said another.
“We had the same experience in Brisbane. There were hundreds of people at the inspections (mostly baby boomers) and we had to compete with cash offers until we decided to look at two-story houses,” wrote another.
Commenters on a viral TikTok video on the topic shared their own experiences, with many saying they would have to wait for an inheritance to be able to buy a house (file image)
What is the solution?
Mr Flynn suggested there should be government-led developments specifically for first-time buyers, with eligibility criteria attached to contracts.
They would be a reverse version of a retirement home: a complex restricted to young, first-time homebuyers.
Meanwhile, he shared his advice for young Australians currently looking to buy their first home.
“Be open to different types of properties and seller circumstances, such as people looking to sell urgently due to divorce or death,” he said.
‘Make multiple offers on several properties, compromising on some features while maintaining basic requirements.’
Adam also suggests considering properties that need renovation or updating, as these may be less attractive to baby boomers who want move-in-ready homes.
Focusing on metropolitan areas is better for long-term capital growth compared to regional locations, even if it means spreading yourself thin within certain boundaries.
‘Also use a different investment strategy – for example, pay the minimum deposit possible, opt for interest-only payments and use the money saved to invest in additional properties over time,’ Adam said.
