Everyone thinks their generation had it the hardest. But what does the data say? Jason Featherby, from Leeuwin Wealth, joined Table Talk with Doug to unpack McCrindle‘s latest findings on cost of living across generations.

Gen X Stands Out

Gen X has copped the most economic hits, according to the report.

“We’ve had the dotcom bubble, the ‘recession we had to have’, the GFC, COVID—Gen X has been through a bit,” Jason said.

Baby Boomers also faced major challenges. In the 70s, they endured the OPEC oil crisis, soaring inflation, and 10% unemployment. But those shocks eventually settled.

“Gen Z hasn’t really faced a real economic shock,” Jason explained. “We think 6% interest rates are high, but Gen X had an average of 7.5%.”

Gen Z’s Biggest Battle

While Gen Z has enjoyed economic stability, buying property has never been tougher.

“There’s just no supply. Prices are high. It’s tough,” Jason said. “The deposit keeps getting higher, and people can’t save fast enough.”

According to McCrindle, Perth’s median house price in 1980 was $40,000, just three times the average salary. Today, it’s 7.2 times for Gen Y and 7.35 for Gen Z. In Sydney, that number jumps to 14.1 times income!

“Back then, interest rates were higher, but the borrowing amount was much smaller,” Jason said.

Living Costs Then and Now

While housing is harder to afford, other areas of life have become more accessible.

“If you want to travel or buy tech, it’s never been cheaper,” Jason said. “But we also don’t keep things as long. We throw TVs out more often now.”

He added, “Financial wisdom matters. Are we living on credit or spending wisely?”

Generational Spending Habits

Spending patterns have changed. Jason recalled that in his early working years, no one bought coffee.

“Now we buy two a day,” he said. “It’s $14 a day on coffee!”

Older generations might argue that younger ones aren’t as frugal, but each generation faces its own unique pressures.

Gen X and Y Caught in the Middle

Gen X and older Gen Y are now caring for both their kids and aging parents.

“We’re referred to as the sandwich generation,” Jason said. “It’s really tough juggling school runs and aged care.”

He recommends families plan early.

“Don’t wait until it’s a crisis,” he said. “Have the conversations early. Know what your parents want.”

Inheritance Isn’t a Retirement Plan

Some are relying on future inheritances, but Jason warns against it.

“We live longer now,” he said. “Many parents are in their 90s. Don’t bank on money that might not come.”

Instead, he urges people to plan for retirement based on what they have, not what they hope to receive.

Housing Crisis: A Supply Problem

Jason also highlighted how immigration impacts the housing market.

“In the last six months, 600,000 people moved to Australia. That’s 600,000 homes we don’t have,” he said.

He believes boosting housing supply is the only real fix, and it’s going to take time.

“Places don’t get built in a week or a year. It’ll be years before we catch up,” he said.

So Who Had It the Toughest?

McCrindle’s findings suggest Baby Boomers faced the most economic pressure, but Gen Z is doing it toughest when it comes to housing.

As Jason summed up the cost of living across generations.: “Every generation has different challenges. There’s no simple answer.”

Listen to the full conversation below.