The New Australian Dream

Thursday, September 01, 2016

Owning your own four bedroom house on a decent block of land with a big backyard and outdoor swimming pool used to be the quintessential 'Great Australian Dream'. But with rising property prices and increased living costs, that dream is being redefined.

what is the Average Australian Profile?

The average full time annual income in Australia is $80,000, which is bumped up a bit because of high income earners. Even though we are living longer now than a generation ago, the average retirement age is little changed, at 61.5 years.

The cost of housing is up with average rent prices per week at $485/week and the average house price (capital city) is $765,730. In Melbourne it is well above this and in Sydney it is around $1 million. This is where the challenge is for Australians: 40 years ago the average house price was around 5 time’s average earnings and now you can see it is almost 10 times the average annual fulltime earnings.

Other than affordability, what else are Aussies looking for?

Lifestyle is key. People are opting to live in higher density areas for the sake of convenience and location- within close proximity to transport, restaurants – the café culture as it has been called. Our Urban Living Index shows a strong correlation between the most urban/densified suburbs and those with the highest liability ratings.

Australians are opting for a lifestyle of Minimalism - we are 'decluttering' our lives and putting more value on the intangibles like travel. Generation Y aren’t opting for a big home with garages to store all their stuff but more of a focus on the easy-livability of apartment living. Indeed many baby boomers are downsizing from their larger homes in the suburbs to this style of living too.

Renting, as opposed to buying, what some of the benefits?

The ability to change locations easily is well regarded – the average Australian renter stays just 1.8 years per home. Our research shows that 1 in 3 renters are actually 'choice renters' and they choose to rent for lifestyle reasons, not primarily for affordability reasons. These choice renters are twice more likely to be living in medium and high density housing than the average Australian and they are almost 10 years younger than the average Australian. The ability to upsize and downsize easily and the flexibility to travel for extended periods of time is a driver for them. ‘Rentvesting’ is also becoming a ‘thing’. This is where people choose to rent in an area they like, but buy somewhere more affordable and use this as an investment

Generation Y are struggling to attain the Great Australian Dream – are they going to be ok?

There is a challenge emerging of "generational inequity" as shown by this infographic:

Gen Y’s have the least wealth of the working generations and their proportion of Australia’s wealth is less than half their demographic share, while the Baby Boomers who are a quarter of the population, own more than half of Australia’s wealth. (More information on this topic can be found here)

This is why Gen Y is reinventing the Aussie Dream and while they do still like the idea of owning something of their own, it is not just the big home with the back yard in the suburbs. But many in this generation will be absolutely fine thanks to the massive intergenerational wealth transfer set to happen in the next 20 years as those aged over 65 transfer much of their total wealth of $2.5 trillion.

A Snapshot of Australia's Housing Market

Monday, August 01, 2016

Owning a home is the great Australian dream, but with 30% of Australians renting, could our love affair with bricks and mortar be turning sour? Our Aussie states go head to head as we compare affordability for buyers and renters.

How many Australians own their home outright and how many have a mortgage?

2 in 5 (40%) Australians are trying to own their own home and slowly pay it off, with the smallest category of all, 28%, being lucky enough to have paid off their home in full.

How do the capital cities compare when it comes to renting an apartment?

As you would expect, Sydney ranks as the most expensive city, costed at about $500 per week for your average apartment. Amazingly, Darwin is up there as well due to more more demand than supply and with not the same investment in stock. Meanwhile, if you move down to Hobart, it is almost half that, paying about $270 per week, and Adelaide not much beyond that at $370.

What if you are looking to buy a home, how much is that?

Sydney is still leading Australia by a long way with almost a $1,000,000 median house price. A distant second is Melbourne, at over $800,000. If you look down to Hobart, the median house price is $357,000, so that means using the money spent on a home in Sydney, you could buy about 3 homes in Hobart – and a pretty good lifestyle down there as well.

Looking at Australia as a whole, what is the percentage of apartments to houses?

About 3 in 4 Australians live in a detached home, so that’s traditionally been the Aussie dream. Then you have about 14% who live in apartments and 10% in townhouses. We are starting to see a change though, with a quarter of Australians now living in medium to high density housing. At the moment if you look at new housing approvals, it's 1 in 3, so it has gone up. If you look at Sydney and Melbourne, 2 in 3 new housing approvals are in medium to high density living. So we are starting to get more densified, with an increase in vertical communities compared to the more traditional horizontal ones, and that’s where we are headed in the future.

Watch Mark's full interview on The Daily Edition here

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare

Last 150 Articles


define educated high density area cancelling plans church Love schools religion urban taskforce financial fears weekly earnings January 26th royal data visualisation income gen z Sydney keynote speaker Netflix debt emerging technologies easter consumerism publication society trends housing growth rise of local pharmacies social shifts ease of travel baby boomers suburb housing village Aussie social commentary staff national private wealth VIC moderators guide social issues hello fresh social researcher goals mobile business emerging trends commute darwin investor australians staying home more sustainable society equip 1968 father's day sun data "know the times" men lifestyle home ownership Australia Day 2017 millenials presentation forum engage Australian Families property life google Australian Trends research results survey 2012 sydneycity living christmas socialites click demographic trends trend tuesday Australian Census mover and shaker social change rent capital cities identity mining boom trends program middle class school satisfaction researcher global work mates generations government house price holiday menai shopper's pick Tuesday Trend entrepreneurial increasing densification Queensland australian communities trends report nfp average aussie Charlotte Assistant Store Manager relevant city faux-ciliser post rationalism investment speakers Australian schools relational Sydney professional budget education eliane miles New South Wales New Zealand marrickville financial future sector wide Christmas presents careers princess charlotte jobs public holiday going out families rain renter of the future media activity vegetarian housing trends earn Kiwi NEETs organisations divorce rate financial travelling GPO waverton case study cold youth crime Territory technology tertiary education REIV National Conference future of education vegemite tea education research mentor bondi quote census collaborative business index healthy future future of work Western Australia tableau communicate university degree brand experience future-proof community engagement consumer 2017 sydney speaker leadership workshop young people Births toys personal growth change 24 million acf15 summer global financial crisis trends of 2017 insights marriages aged care puzzle group session generation Z safe future conferences perth learning financial independence award future proof ACF 2016 hobart public speaking Kirsten Brewer cartodb crows nest Aussies 2014 eliane slideshare newspaper February 16 couple sydneysiders sunny days tv christianity royal family residents social trends learn ethnography learning styles Myth outsourcing plans visualisation state 1975 global generations cost of living rising house prices event professional development 23 million Generation X collaboration Mark McCrindle list food Duchess of Cambridge trends analyst affordable language national crime rates friendship house price rise media release McCrindle Speakers gender house prices suburbs population map ABS fears children Bathburst grandparents greatness schools students kate middleton prince george household know the times The Daily Edition blaxland 2013 owning a home Valentine’s Day forecasting resource PSI monarchy the australian dream criminal hopes cooking teach report litter education sector thought leadership EFF 2016 rental stress Merry Christmas land of the middle class mythbusting annual income workplace megatrends SMSF world salary TDE winter social researchers demographic transformations New Zeland school students mccrindle tea school supply and demand friends study wedding Financial Planning Association of Australia learner mateship marketing ACF water Wodonga mortgage cultural diversity entrepreneur gen alpha faux-cilise alpha house graphs responsive poor family Australian Bureau of Statistics university repayments internet narcissism not-for-profit buildings social commentator spend economy Northern Beaches sector wide study education future report retirement households employers australian communities forum millionth happiness manly Gen X australia wolloomooloo financial dreams fresh tips high school daily telegraph Australia Day Australian Dream communication Wellington states brands ageing emerging generations students growing population student HSC Education Future Forum 1980 video the changing face of norwest educhat cost Wagga Wagga community online Northern Beaches Christian School meals Australian Communities Trends in depth interviews not for profit selfie mccrindle research rule keeper generation Population Clock workplace culture Caregiver daily commute investing housing market medicine demographer brand Christchurch new office events Research Executive Financial Planning Association renting workforce proactive national wealth economic mythbusters leader media local contiki wellbeing interactive etiquette urban coffee wealth and income ipswich non profit Tuesday Trends skills Res Vis finance poker master education future optimistic community event entrepreneurs of today population growth shbc earning Financial Planning Week world youth day brisbane professional speaker authenticity Crime Rates social analysis property price IT Specialists communities neutral bay millennials transport goal Northern Territory training REIV Conference volunteers entertainment demographic names huffington post shopping home owner wealth and income distribution gold coast parenting dreaming Australians JOMO intern lalor park tuesday logan office opening DIY balance Scouts qualitative research NT 40 million baby names innovation omnibus resilience easy rider real innovative ACT experience digital customer debate ultimo bureau Royals futurist year 7 culture townhouses infographic ashley fell local communities wages panel parents baby name trends pharmacy The ABC of XYZ data analyst Generation Y Channel 7 Geoff Brailey new york times optus social media conference Word Up SA forecast geomapping divorce social life unaffordable TAS population facts socialising builders politics typical australian Northern beaches Event wealth distribution stats cars stay home capital city teacher ageing population twentyseventeen NSW storytelling growth Melbourne trends of 2016 victoria English Channel Seven pyrmont marriage priorities tattoos teaching personalities Hornsby Shire Council australian social research long weekend shifts Tasmania clothing sports holidays WA trend online shopping conference presentation aussie culture analysis media commentary sector internship women CBD sydney event employment Canberra environmental scanning demographics organisational culture baby boom thrive small business focus group Real Estate Institute of Victoria dream urban living challenge participants mccrindle in the media wage cancelling event hills shire insight conference speaker networking dessert social Queensland: QLD survey design baby cancel plans office space research visualisation research services FOMO meetings home sentiments royal baby product housing affordability aged care career in the media 2015 winter blues baby name predictions suburban living faux-cilising 10 years visual high density living 24,000,000 energy mccrindle research pack earnings dare to dream social enquiry child care sunburnt country keynote speaker market research leadership generational trends generation alpha recap cloudy days World Water Day System's Architect news celebration FPA work Adelaide office seasons ashley mckenzie Christmas season weather jobs of the future statistics paying to work Engineering Manager group engagement domestic snapshot social lives young australians Deaths Do It Yourself baby name environment work-life mother's day staying in woolworths optus my business awards royal influence year 12 potts point social impact deloitte wealth hornsby curiosity youth unemployment teachers Real Estate urban living index Australian demographics Gen Y offenders presentations motivate ideas anzac cash Australian communities follow travel property market high density apartments unemployment DESTEL affordability future proofing social research 1994 overcast South Australia google for education population milestone workshop Social Trend moreton bay infographic wall Christmas lunch focus groups keynote research data teleworking charity Australian Home 2020 communications internships rich apartment low density