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.

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

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

Archive