The Sunday Telegraph presents Silver spoons and golden futures: The 20 Aussie rich kids under 20

It’s a battle for the ages – with Baby Boomers and Millennials pitted against each other.

We’ve all heard the complaints about smashed avocado on toast or cashed-up older Aussies outbidding youngsters for property, but which generation really had it easier when buying a home?

Comparison website Finder.com.au has crunched the numbers using data from CoreLogic, the Australian Bureau of Statistics and the Reserve Bank.

Its verdict? “Baby Boomers had a far easier time both buying and repaying their home than Millennials do today,” said Finder insights manager Graham Cooke.

This is despite boomers being slugged with interest rates above 17 per cent three decades ago.

“The average home cost 3.5 times the average salary in 1985,” Mr Cooke said.

“That figure stands at 6.7 times today, and even higher than that in big capitals like Sydney and Melbourne.

“Boomers often talk about the high interest rates that they had to pay when they purchased houses, and they certainly did. However, they also made more interest on their money – so saving for a deposit was far easier.”

Finder’s analysis shows:

• Since 1985 average full time wages have increased 4.3 times, from $20,644 to $88,140.

• Capital city house costs have increased 8.2 times in that period, up from $72,827 to $596,986.

• The proportion of household income spent on mortgages climbed from 28 per cent to 36 per cent.

“In all honesty, it looks like it is going to get worse from here for new buyers,” Mr Cooke said.

“While inflation and wage growth have been painfully low in recent years, the value of property just keeps going up.”

Social researcher Mark McCrindle said debate over which generation had it easier was “nuanced”, but it was a big challenge for Millennials and Generation Z – now aged 10 to 24 – to buy property.

Younger generations faced new spending categories such as smartphones, internet and subscriptions, Mr McCrindle said.

Millennials – born between 1980 and 1994 – were investing in their own education more, which would eventually deliver higher earnings, he said.

“They’re rising up the pay scale more quickly.”

Mr McCrindle said Millennials also benefited from a more stable economy, lower mortgage interest rates and reduced prices for goods such as groceries and electronics.

And many would benefit from a $3.5 trillion transfer of wealth from their ageing parents over the next two decades, he said.

Boomer parents were sympathetic towards their children’s housing struggles, Mr McCrindle said.

“A lot of Boomers say ‘I couldn’t afford to buy where I currently live’,” he said.

“It’s their children priced out of the market and they’re happy to lend a hand.”

@keanemoney