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


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