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.

A Snapshot of the Changes Transforming Real Estate

Tuesday, September 06, 2016

Change. It’s happening all around us, and it’s easy to be intimidated by the scope and scale of it, but if we can observe the trends and the shifts, then we don’t have to become victims of change but rather we can proactively respond. That’s what’s key. Having the confidence to move forward strategically and proactively, to embrace the trends rather than hide from them.

Earlier this year Mark McCrindle presented Understanding the Times, Shaping the Trends: A Snapshot of the Changes Transforming Real Estate at the Real Estate Institute of Victoria National 2016 Conference. Here are some of his thoughts on trends shaping the Real Estate Industry.



How are generational differences impacting the REAL Estate industry?

Generationally, it is more important than ever to understand the six generations that we have in Australia. While the younger generations might not be active clients in terms of real estate vendors, they do influence parental purchasing and decisions a lot.

We can sometimes pre-qualify people based on our perception of where they’re at in their life stage, but actually there are a lot of people in their late 70’s who are still active in property, perhaps downsizing to buy their next place. Then you’ve got someone in their early 20’s who’s maybe not buying their own place, but perhaps looking at an expensive home because they will be living in that home with their parents. We have to understand the diversity of the generations and all of them may well be active influencers in the buying decision.

Do you have any recommendations on how the Real Estate industry can engage their community?

Sometimes the best connections are actual connections, not just personal ones. The events, the openings, the events where we invite the community along and talk about the area and what’s happening. That brand experience, where people can come to meet and greet with free pizza or cocktails, that sort of thing is what works well, people are looking for that social interaction.

Any tips for those working in real estate?

Well I’d sum it up with the 4 R’s of Real Estate in the 21st Century:

REAL

Keep it real and authentic

RELEVANT

To adjust and adapt

RELATIONAL

Keep it relational in terms of how we connect

RESPONSIVE

We can’t just rely on yesterday’s wins, we have to adjust and adapt to remain responsive to the needs of today


ABOUT MARK MCCRINDLE

Mark 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.

Mark’s understanding of the key social trends as well as his engaging communication style places him in high demand in the press, on radio and on television shows, such as Sunrise, Today, The Morning Show, ABC News 24 and A Current Affair.

His research firm counts amongst its clients more than 100 of Australia’s largest companies and his highly valued reports and infographics have developed his regard as a data scientist, demographer, futurist and social commentator.


DOWNLOAD MARK'S SPEAKING 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

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

Archive