Do older generations really believe that $2500 per year on "Gen Y expenses" is what's stopping them from buying?
I'd say; yes; it is. Most young people don't earn all that much, and want to live it up as well.
Maybe you are a Gen Y whose income is so high that $2500 per year is nothing? If so, you'd be in the minority maybe, and probably not able to really give an accurate opinion as to what
is a lot of expenses for that age group...
From my experience here on SS, this is a common type of comment; most young-uns here are in the higher earning/professional type careers; IT and the like, and make those sorts of ignorant-of-the-plight-of-the-average-person remarks.
Otherwise, every broke young adult would be here chewing the fat with us other would-be property investors... but they aint.
How many "live-at-home-welfare", or "struggling-to-make-ends-meet-as-a-check-out-dude" Gen Y's are here here on any given day compared to yer IT consultant?
Not many I'd wager, because they often don't have the same aspirations. The vast majority of younger folk aren't into property as a means to get rich, so the reality is that when it comes time to buy, and they go to the Bank and they say; "How much deposit have you got?", many haven't saved one, or enough of one.
Now, this may be totally due to the price/type of the property they have their eye on buying (unrealistic expectations), or they simply haven't got enough saved full stop.
So yes; $2500 is a big hand-brake for many Gen Y's I'd say.