Are the rich getting richer?

Friday, September 22, 2017


Australia has long been considered the land of the fair go. It is a nation regarded as a classless society where the suburbs were the social equalisers- a melting pot of lawyers and labourers, teachers and tradies.

The ‘great Australian dream’ where people on average incomes near the start of their working life could afford a home is fading and the latest data reveals a widening wealth gap.

What are the drivers of this wealth stratification?

Property prices and ownership

The latest HILDA data from the University of Melbourne showed that two decades ago, one in three young people aged 18 - 39 owned a property, compared to today, where just one in four young people own a property.

The impact of growing demand on house prices is most evident when comparing prices to average earnings. Twenty years ago, the average Sydney house was 5.6 times average annual earnings while in Melbourne it was an affordable 3.4 times annual earnings.

Today, Sydney homes are more than 14 times average earnings, and in Melbourne more than 11 times annual earnings.

Generational challenge

The generational financial inequities are even more pronounced when analysing net wealth by generational cohort.

While Gen Y have a household net worth of $268,800, it is less than half that of the Gen Xers who are just a decade older. The highest net worth generation in Australia are the Boomers aged 55-64 who not only have a net wealth almost 5 times that of the generation of their children (Gen Y) but they still have a decade or more of earnings and wealth accumulating ahead of them.

How can we level the playing field?

Policy has partly created the rising house prices through migration settings and therefore population growth. Policy settings have also created the SMSF demand for property and tax settings such as negative gearing have been a boon for property investment. Therefore policy could also assist in bringing a solution such as assisting in intergenerational wealth transfer or allowing superannuation fund access for first-home buyers. For a generation finding it harder to get a foothold in property, further research into possible policy adjustments is a worthwhile approach.


About Mark McCrindle

Mark McCrindle is an award-winning social researcher, best-selling author, TedX speaker and influential thought leader, and is regularly commissioned to deliver strategy and advice to the boards and executive committees of some of Australia’s leading organisations. Download Mark's full speakers pack 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


Tags

social lives infographics Channel Seven forecast Jura Australia panel not for profit woolworths 2015 USA "know the times" FPA 1968 2013 the average aussie social shifts food huffington post builders online shopping royal baby donation Vocational education Social Trend NFP event communication Christmas data rise of local shopper's pick greatness mccrindle tea Adelaide data visualisation tuesday global retail goal educated eliane miles average sydneysider optus my business awards state dare to dream curiosity Mark McCrindle australian community trends report urban development Financial Planning Association of Australia townhouses micro apartments property price communications hello fresh award insights teaching SA hornsby James Ward baby boomers social gig economy organisational culture results brand experience typical australian social commentator online FOMO NBRS Architecture facts organisations population milestone thrive sydney hills post rationalism food insecurity Generation X monarchy snapshot stats office opening newspaper choice workers infographic research on coffee education future report millenials change purpose Engineering Manager engagement IT Specialists Australian community trends Christmas day weather low density TEDx Speaker Education Future Forum Jura Coffee customer population growth renting sydney event residents census results belief suburbs Duchess of Cambridge internship university degree sydneysiders christmas trees father's day life trend tuesday generation hills shire motivate growing population google for education megatrends marriage housing market faith and belief shopping Sydney Lifestyle Study DESTEL winter demographic event china mccrindle demographer pyrmont Kirsten Brewer meetings urban taskforce new office gold coast royal family entrepreneur wages Christmas day social change focus group intern learning national wealth national crime rates children cica dessert schools students trades personalities 10 years publication training future generations community event christmas 2017 nativity scene leadership workshop cooking economic Wellington thought leadership global generations personal growth non profit trends energy mccrindle research small business giving volunteering data program employmee government career ACF 2016 geomapping storytelling wealth going out cancelling event baby names australia report house house price unaffordable tertiary education earnings aged care puzzle CBD hobart NEETs community wedding ACT emerging generations india growth paying to work university renter of the future futurist statistics outsourcing group session REIV Conference litter urban living commuting networking lifestyle grandparents cartodb workshop demographic analysis surname casual work-life staying in digital marrickville Sydney population toys nfp future of shopping youth screenage households public speaker sydney property market Research Director Hornsby Shire Council ACF17 Gen Z Expert analysis couple Deaths leadership communities earning deloitte surnames demographics capital cities impact in the media dream Australia Day research visualisation child care generational trends Australian Families employment technology trends of 2017 royal influence weekly earnings mover and shaker February 16 cold presentations keynote speaker Sydney’s south west Crime Rates financial cars urban politics interactive entrepreneurs of today baby boom Wagga Wagga car etiquette transport census fail social issues marketing generation Z australian real estate social life high school Word Up English menai marriages rich relational Black Friday Sales victoria Queensland school satisfaction qualitative research future-proof live the dream media commentary pharmacy volunteering sentiments wellbeing norwest the future mythbusters graphs holiday Generation Y crows nest middle class conference poker master recap ACF2017 home ownership Australian Bureau of Statistics child hunger data brisbane culture Australian schools the australian dream media release shifts selfie internships cost of living researcher society trends 2016 census meals SMSF Business analysis Millennial future mccrinlde TAS maiden names rule keeper society professional presenters SRE apartments sun high density apartments emerging trends Kiwi buildings Births leadersip shbc national private wealth coffee lovers TDE NT Population Clock Channel 7 community engagement healthy future resource long weekend christian learning styles baby name predictions business performance product innovation keynote Valentine’s Day Maxim Accounting What is food insecurity? debt housing growth speaker REIV National Conference baby names owning a home brands optus ferry financial planning work mates tea sydney market social trends award winner public speaking socialising world youth day CPI social media Andrew Duffin investment spirituality wealth and income distribution quote tv priorities twentyseventeen school wage Northern Beaches Territory sydneycity spend hills education future 1975 australian communities trends report property market 2020 South Australia careers changing face of sydney Black Friday in Australia ideas conferences earn retirement WA maiden socialites SMART annual income Cobbitty-Leppington resilience Macquarie University Bathburst Elderslie-Harrington park NBRS balance in depth interviews ethnography religion showreel social analyst mortgage education sector business index plans micro future of education affordability future proof income mccrindle in the media Research Executive sophie renton trends analyst money fears Gen X global US McCridle conference presentation ACF 2016 ultimo suburban living land of the middle class Mark McCrindle in the media professional clothing Western Australia growth of sydney indonesia participants World Water Day cultural diveristy seasons Geoff Brailey happiness census data divorce The ABC of XYZ millionth not for profit research men Lower Hunter Region environmental scanning water world cancel plans poor TEDx alpha Willowdale teach waverton sydney metro education experience social researcher manly The Daily Edition home faux-cilise debate slideshare office news baby names report friends visualisation Financial Planning Week speakers report housing medicine 2017 speakers pack research happy holidays sector budget work gen z ABS daily telegraph ipswich year 12 Canberra NSW dreaming Christmas research who is generation z narcissism moderators guide home owner Tuesday Trends investor Aussies Tasmania faux-cilising new york times cost seasons greetings 2009 baby name click VET generation alpha social analysis infographic wall sydneysider generations conference speaker travel 2012 the changing face of mobile bureau donate research report criminal real Sydney Hills Business Chamber #censusfail Wodonga rumbling tummies not-for-profit hopes McCrindle Keynote Speakers learn gender aussie culture easter the hills shire sunny days australian Christmas lunch average Australian rental stress the lucky country responsive omnibus office space January 26th celebration consumerism contiki Australian Population social research grave decision ageing ageing population New South Wales forum collaborative leader lalor park faux-ciliser Gen Y sector wide study Performance Sentiment Index research services equip VET sector church cultural diversity rising house prices domestic darwin research data 23 million Australian Census women affordable winter blues Australian Dream students groceries local communities census moreton bay HR charity staff living JOMO Real Estate Institute of Victoria employmer Christmas Stats wealth distribution sports divorce rate story volunteers suburb charities mythbusting perth 40 million market research population map engage the hills younger generations house price rise goals survey Christchurch TED ashley mckenzie cloudy days demographic transformations Real Estate professional speaker forecasting logan teachers culturally diverse faith Scouts investing sunburnt country focus groups Christmas season Australians future of work acf15 Caregiver crime research pack speajer 24 million VIC HSC Christmas presents 1980 chairty trend overcast DIY Melbourne youth unemployment google Aussie 1995 Work place EFF tableau Northern Territory gen alpha parents hunger define Northern beaches Event brand financial future australian social research Mount Annan-Currant Hill sydney speaker entertainment Lower Hunter global generaion young australians states mentor blaxland professional development wealth and income global financial crisis neutral bay case study Assistant Store Manager social impact capital city bondi Australia Day 2017 bus New Zeland average aussie easy rider fresh mother's day 24,000,000 prince george vegemite McCrindle Speaker local social enquiry PSI do people still change their surname after marriage? local community family house prices Australian communities mining boom area princess charlotte 2016 census results demography cash System's Architect safe communicate housing affordability anzac Netflix Myth royal skills economy emerging technologies cancelling plans consumer australians staying home more shopping centre Australian demographics summer video rain offenders urban living index Res Vis daily commute ashley fell salary events weather optimistic relevant gig school students christianity teleworking names millennials Understanding and Engaging with Generation Z presentation Christmas in Australia employers Charlotte baby media activity proactive screenagers survey design year 7 families visual apartment property group insight sustainable social commentary supply and demand education research tattoos mateship sector wide high density public holiday jobs Australia street property development list rent census 2016 Sydney keynote speaker breakfast housing trends business demographic trends tips data analysis young people commuters ease of travel care support pharmacies wolloomooloo village australia unemployment commute challenge trends of 2016 travelling professional services 2014 entrepreneurial Black Friday 1994 parenting financial dreams data analyst Do It Yourself digital economy aged care finance media language christmas high density living eliane Northern Beaches Christian School baby name trends TED talk dreams increasing densification wealth inequality the great screenage future proofing potts point Hills Shire Council Australian Trends student follow McCrindle Speakers public transport train food bank holidays educhat social researchers stay home learner authenticity Sydney New Zealand repayments GPO schools jobs of the future Retail volunteer Queensland: QLD Foodbank Australia australian communities forum Hunter Valley study workplace work from home Tuesday Trend environment Merry Christmas financial fears household Australian Home internet identity innovative workforce global generation financial independence population workplace culture kate middleton coffee ACT Report Royals Love friendship city collaboration teacher know the times vegetarian Australian Communities Trends Skilling Financial Planning Association

Archive