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


Tags

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

Archive