The Australian birthrate has fallen to its lowest level on record, with young families having fewer kids and having them later. Joshua Barnett reports.
According to the Australian Bureau of Statistics, the national fertility rate dropped to 1.48 births per woman in 2024, down from 1.50 the year before, well below the 2.1 needed to maintain a stable population. Parents are also older than ever, with the average age of mothers now 32.1 and fathers 33.9.
Younger Australians are being priced out of the future, one that their parents took for granted. From housing to job insecurity, the decision to have children has become a financial calculation for many young people, and unfortunately, the math isn’t stacking up.
The housing trap
For most, the basic requirement for raising a family is a stable home. In Australia, that’s become an impossible dream for many.
According to the Australian Institute of Health and Welfare, one in four Australian households now spends more than 30% of their income on housing, which is generally considered threshold for financial stress
Over the ten years to March 2025, median advertised rents in Australia rose by approximately 48% for both houses and units, and over the same period, the median house price in Sydney has doubled, hitting around $1.75 million by the end of 2025.
In 1984, the average home cost just 3.3 times the average income. Today, it’s closer to 10.
The housing crisis we didn’t have to have, and how to fix it
In 1981, 68% of 30-34-year-olds owned their own home. In 2025, that figure is now about 49% nationally (45% in NSW).
For young people, that means long-term renting or staying in share houses well into their thirties.
It’s not that they don’t want children, it’s that they can’t see how to afford them.
As University of Sydney demographer Liz Allen notes, the gap between how many children people want and how many they actually have is widening, and the reason isn’t preference; it’s “insurmountable barriers” like housing and cost of living.
The economic squeeze
When surveyed, young Australians consistently rank cost of living as the top reason they’re delaying parenthood. And they’re right to worry. Childcare, rent, groceries, and energy bills have all risen faster than wages.
Even for those who manage to find a place to live, economic insecurity looms large. For more than a decade, real wages in Australia have barely moved, with only an increase in the last 12 months. According to the Australian Bureau of Statistics and ACTU, wages as a share of the economy are now at their lowest level since records began in 1959. Productivity has risen, but most Australians haven’t seen the benefit.
At the same time, the workforce has become increasingly precarious. Casual contracts, gig work and underemployment are the norm for younger Australians. Over one million people now work multiple jobs just to stay afloat. For many, job security doesn’t exist, which makes the idea of starting a family feel like a financial risk.
The ACOSS Poverty in Australia 2025 report shows that one in seven Australians lives below the poverty line, and one in six children — about 757,000 — are growing up in poverty. The poverty line is set at 50% of the median household income after tax, or roughly $584 a week for a single adult and $1,226 for a couple with two children. By comparison, the JobSeeker payment sits at about $396 a week.
On average, families in poverty fall $464 short each week, with rising rents and stagnant income support leaving many unable to cover basic costs after housing.
The generational divide
Baby Boomers came of age in an era of cheap housing, free education, and strong wage growth. Many built wealth through property and superannuation, helped by generous tax concessions that still exist today. Millennials and Gen Z, by contrast, face the opposite: student debt, record rents, and job insecurity.
The result is an intergenerational imbalance that economists have warned about for years. Older Australians now hold the majority of national wealth, while younger generations shoulder the tax burden that funds age pensions and healthcare.
Even monetary policy has widened the gap. When the Reserve Bank began hiking interest rates to curb inflation, older Australians with savings gained from higher returns, while younger Australians with mortgages were hit with crippling repayments. In effect, money flowed upwards — from the young to the old.
This wealth divide isn’t abstract. It determines who can afford to have children, buy a home, or build a future. For many young Australians, it feels like they’re paying for their parents’ retirement while being locked out of the same living standards.
Baby steps
The Albanese government has made some progress. Policies such as cheaper childcare, expanded paid parental leave, and increased rent assistance aim to ease pressure on families.
The Child Care Subsidy now covers up to 90% of fees for low-income households, saving some families thousands per year. Rent assistance saw its biggest increase in three decades, and minimum wages have been lifted twice since Labor took office.
But these are incremental fixes to structural problems.
Labor appears to be playing the long game. These small reforms may take a generation to show any measurable effect on fertility. By then, Australia’s working-age population will be smaller, older, and under greater tax pressure to support retirees.
Australia’s falling birth rate reflects growing economic pressure and declining confidence among younger generations. The evidence shows that housing costs, insecure work, and slow wage growth are reshaping family decisions. While recent government measures aim to ease some of these pressures, experts suggest they remain too limited to shift long-term trends.
The data points to a generation delaying or abandoning parenthood, not out of choice but circumstance. Until the broader economic conditions change, Australia’s fertility rate is likely to stay at record lows, a demographic signal of a society struggling to provide a secure foundation for its future.
Josh is a professional musician and cameraman who is now working with Michael West Media to develop The West Report and other visual content across major social media channels