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


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