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.

A Snapshot of Australia's Housing Market

Monday, August 01, 2016

Owning a home is the great Australian dream, but with 30% of Australians renting, could our love affair with bricks and mortar be turning sour? Our Aussie states go head to head as we compare affordability for buyers and renters.

How many Australians own their home outright and how many have a mortgage?

2 in 5 (40%) Australians are trying to own their own home and slowly pay it off, with the smallest category of all, 28%, being lucky enough to have paid off their home in full.

How do the capital cities compare when it comes to renting an apartment?

As you would expect, Sydney ranks as the most expensive city, costed at about $500 per week for your average apartment. Amazingly, Darwin is up there as well due to more more demand than supply and with not the same investment in stock. Meanwhile, if you move down to Hobart, it is almost half that, paying about $270 per week, and Adelaide not much beyond that at $370.

What if you are looking to buy a home, how much is that?

Sydney is still leading Australia by a long way with almost a $1,000,000 median house price. A distant second is Melbourne, at over $800,000. If you look down to Hobart, the median house price is $357,000, so that means using the money spent on a home in Sydney, you could buy about 3 homes in Hobart – and a pretty good lifestyle down there as well.

Looking at Australia as a whole, what is the percentage of apartments to houses?

About 3 in 4 Australians live in a detached home, so that’s traditionally been the Aussie dream. Then you have about 14% who live in apartments and 10% in townhouses. We are starting to see a change though, with a quarter of Australians now living in medium to high density housing. At the moment if you look at new housing approvals, it's 1 in 3, so it has gone up. If you look at Sydney and Melbourne, 2 in 3 new housing approvals are in medium to high density living. So we are starting to get more densified, with an increase in vertical communities compared to the more traditional horizontal ones, and that’s where we are headed in the future.

Watch Mark's full interview on The Daily Edition 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


baby name global financial crisis acf15 easter stay home aussie culture food insecurity life SMSF young people technology James Ward urban taskforce google for education potts point professional speaker Kirsten Brewer global generaion domestic research 24,000,000 social commentator teach rich workplace urban living sector wide study TDE hills shire grave decision baby names report event food bank financial planning high density belief digital year 7 financial dreams Births safe rental stress change 2016 global generation public holiday NSW faux-ciliser couple christmas 2017 middle class cold Queensland perth students typical australian financial NEETs learning office census men TEDx Speaker Sydney Hills Business Chamber learning styles educated Tuesday Trends cash ACF17 townhouses home ownership IT Specialists Research Director low density winter staying in Understanding and Engaging with Generation Z careers researcher builders names housing trends mover and shaker friends cultural diveristy VIC New Zealand define hunger post rationalism norwest urban development innovative conference speaker new office social commentary Northern Beaches Christian School VET sector affordable royal family stats Financial Planning Association of Australia staff Merry Christmas buildings Res Vis qualitative research supply and demand suburb twentyseventeen New South Wales emerging generations housing high density living Research Executive curiosity Netflix average sydneysider Sydney Scouts Population Clock community JOMO cars financial independence nfp 1968 Cobbitty-Leppington land of the middle class weather youth princess charlotte lalor park showreel networking the average aussie 40 million wealth inequality NBRS Architecture research report organisations quote economic wealth huffington post ashley fell The Daily Edition crime ultimo the hills PSI 1980 Christmas in Australia social issues Mount Annan-Currant Hill professional presenters Lower Hunter school satisfaction media activity impact volunteer who is generation z Sydney population skills 1994 communications anzac australian social research paying to work group the changing face of meals Australian schools car Adelaide Mark McCrindle in the media Gen Y not for profit research US manly proactive Australian Dream DESTEL fears economy Australian Trends teleworking daily telegraph church darwin CBD program demography learn apartment small business christmas trees #censusfail business mentor authenticity Sydney’s south west resource shopping crows nest Northern beaches Event wage going out hills growth baby TED talk media release Melbourne focus groups January 26th Social Trend mortgage SRE forecast long weekend area storytelling challenge children offenders baby names baby name predictions demographic transformations gen z global gig equip presentations research services baby name trends baby boomers news Territory jobs of the future futurist trends of 2016 social trends micro apartments intern rain public transport commuting generation ACT Report the hills shire social lives maiden names workplace culture Christmas day weather victoria growth of sydney workshop spend living ethnography social analysis Australians earnings Assistant Store Manager eliane suburban living relevant christianity Australia street 2017 New Zeland wages Australian Population forum TED NBRS presentation global retail alpha selfie award winner brand experience house royal personal growth budget plans vegetarian deloitte high density apartments Australian Families bondi educhat home owner property price unaffordable media commentary Channel Seven Sydney Lifestyle Study GPO internships insights 2013 personalities dream changing face of sydney ageing Caregiver cancelling event ABS university property Tasmania research on coffee sustainable ACF Christmas presents investing wealth and income distribution income water product home community event casual real Black Friday 1995 entrepreneur brand friendship What is food insecurity? Christmas data Real Estate responsive Hunter Valley rise of local Northern Beaches Black Friday Sales sector the lucky country data Queensland: QLD capital city residents South Australia new york times cost average Australian donation Engineering Manager society states cost of living hopes sydney hills do people still change their surname after marriage? sunny days speakers australian real estate statistics ferry sun waverton aged care puzzle work-life in the media sydney speaker etiquette FPA culturally diverse participants training millionth leadership generation Z emerging technologies child care Aussies society trends SMART infographic social change Christmas lunch conference teachers omnibus Royals medicine divorce rate blaxland marriage entrepreneurial holiday media speaker cancelling plans "know the times" market research high school national private wealth 1975 office opening employmer population education sector choice workers state house price communication education future increasing densification census results wolloomooloo urban overcast housing affordability generation alpha christmas Wagga Wagga sector wide conference presentation Sydney keynote speaker visual population map city Vocational education millennials Work place earning coffee lovers Macquarie University EFF ageing population world mccrindle in the media clothing vegemite the australian dream dreams gig economy professional services data visualisation case study work from home repayments commute trades Australian community trends employment brisbane housing growth ACF 2016 census data seasons greetings households cooking future of work surname keynote motivate in depth interviews apartments capital cities breakfast pharmacies social shifts sydney metro online earn graphs demographics parenting dare to dream baby boom trend tuesday story national crime rates sydneycity culture moderators guide student environmental scanning priorities McCrindle Speakers business index australian global generations gold coast food internet university degree holidays owning a home optus my business awards cultural diversity demographer tableau engagement sydneysiders national wealth families click divorce train Gen X social enquiry prince george aged care social professional development 2020 menai USA poker master jobs renter of the future work mates giving australian community trends report consumer visualisation Generation Y 23 million Wellington shifts Performance Sentiment Index volunteering panel VET hornsby ideas events McCrindle Keynote Speakers teacher meetings mateship purpose logan group session youth unemployment future proofing speakers pack housing market HR communities affordability house prices future-proof sentiments local rent parents generations trends of 2017 schools students 2009 cancel plans Education Future Forum tips work demographic trends trends online shopping teaching 2016 census results Australian Home Hills Shire Council research pack social impact women faith financial future Black Friday in Australia Generation X care support SA property market shopper's pick results cica wellbeing live the dream marriages System's Architect urban living index education McCrindle Speaker Australian Communities Trends Love entertainment office space young australians Tuesday Trend grandparents school woolworths indonesia education research research data 2012 24 million census fail wealth and income research visualisation social researchers keynote speaker 2015 world youth day Skilling employers sydneysider marrickville younger generations study Word Up faux-cilising wealth distribution growing population gender REIV Conference emerging trends collaborative career house price rise experience TEDx celebration future proof australian communities trends report NFP event list Lower Hunter Region survey design mythbusters schools customer Australia Day sports social analyst hello fresh education future report Deaths moreton bay money marketing population milestone wedding sunburnt country population growth micro google narcissism daily commute Financial Planning Association year 12 travelling tuesday sydney market Kiwi Australian demographics Hornsby Shire Council McCridle report infographics rising house prices pyrmont rule keeper data analyst employmee seasons chairty Financial Planning Week nativity scene mobile thrive internship millenials facts bus charity leader focus group litter brands goals renting social research suburbs pharmacy tattoos not-for-profit leadersip interactive future of education Willowdale social researcher ashley mckenzie village Christmas season CPI WA 2016 census resilience forecasting cloudy days toys balance shopping centre household china poor outsourcing digital economy social life snapshot screenage business performance analysis Christmas Stats follow kate middleton newspaper demographic ease of travel public speaker Australian communities baby names australia report leadership workshop entrepreneurs of today Mark McCrindle DIY australians staying home more criminal charities Geoff Brailey future of shopping public speaking organisational culture royal baby Gen Z Expert workforce spirituality Business analysis thought leadership Australian Bureau of Statistics healthy future eliane miles annual income volunteering data faux-cilise FOMO australia insight Maxim Accounting Jura Australia gen alpha mythbusting tea sydney property market Elderslie-Harrington park video trend consumerism cartodb easy rider future weekly earnings tv dessert communicate Aussie family know the times Myth World Water Day trends analyst publication ipswich ACT survey summer shbc christian goal Australia Day 2017 optus mining boom TAS mother's day not for profit average aussie maiden community engagement conferences generational trends contiki politics learner retirement father's day religion surnames Channel 7 royal influence winter blues coffee Andrew Duffin Retail volunteers government socialising lifestyle local community 2014 ACF2017 environment commuters Christmas research mccrindle tea neutral bay professional investment transport unemployment geomapping australian communities forum india innovation award speajer local communities February 16 monarchy Do It Yourself Duchess of Cambridge happiness happy holidays debt Western Australia debate Jura Coffee Crime Rates Australian Census mccrinlde REIV National Conference 10 years English Christmas day energy sydney event Wodonga census 2016 bureau donate travel engage screenagers collaboration mccrindle research Charlotte socialites social media HSC The ABC of XYZ Valentine’s Day greatness financial fears infographic wall salary language identity recap relational non profit megatrends Real Estate Institute of Victoria investor tertiary education property development optimistic Christchurch fresh mccrindle Northern Territory finance school students hobart dreaming the great screenage Bathburst Canberra NT slideshare