Higher house prices and costs of living are disproportionately affecting young people. (ABC News: Eric Hao Zheng)
Generational inequality is pushing more young Australians out of the housing market, Anglicare's new Falling Behind report shows.
The report found home ownership among 25-34 year olds has fallen to an 80-year low.
Anglicare Australia executive director Kasy Chambers has welcomed efforts to remove tax breaks for investment property and called for a shake-up to the Youth Allowance payment.
More young people are abandoning hopes of home ownership amid increasing generational inequality, according to a new report.
Anglicare's Falling Behind report, released on Tuesday, found home ownership among 25-34 year olds has fallen to an 80-year low — highlighting intergenerational inequality from tax settings that favoured housing investment.
Young Australians are facing a future where working hard does not guarantee security, Anglicare Australia executive director Kasy Chambers said after the report's release.
"The economic foundations underneath them have shifted," she said.
Ms Chambers said there was a perfect storm that led to inequality between the generations.
"What we can see is that we've got young people coming into a workforce that is more insecure, we can see that we've got increased costs," she said.
"People are studying longer. We know that it takes much longer to save a deposit for a house in terms of the annual average income versus the deposit."
Kasy Chambers has called for more measures to even the financial playing field. (AAP: Mick Tsikas)
Anglicare's report found older Australians "appear insulated" from today's economic pressures, having earned wages during a stable period in the job market and amassed wealth from investments which are taxed less severely than wages.
The report found that while older Australians' wealth has significantly increased over time, their share of income tax has not.
It said young people are "absorbing the impact" with lower wages proportional to house prices and cost of living — affording less opportunity to amass wealth.
