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.

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


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