We are a bunch of pikers… and we’re ok with it!

Thursday, November 10, 2016

Australians want to be seen as being social and yet often prefer the comfort of their own home to going out and socialising. 45% of Australians always prefer to stay home, no matter what night of the week it is and a further 73% have turned down an invitation to go out on the basis that they preferred to stay home. Highlights from our recent research commissioned Connoisseur Desserts show that the typical Australian is making pretty similar choices when it comes to their social lives and (not) going on a night out.

Dropping in

77% of us report to dropping in on social events just to show our faces all, a lot or some of the time. For nearly 20% of 20-34 year olds, a ‘drop in’ often means attending more than one event on a night out – really making the most of rare occasion to socialise out of home.

Dropping out

69% of us are happy to cancel plans in the week of the event, and 14% admit they’ll drop out on the day. Seems old fashioned politeness goes out the window across all generations with one in three bailing on the day before/day off/at the time.

While spring and summer are the more social seasons for Australians, there is a lot of bailing out of events and catch ups in our increasingly busy lives. And ditching on work functions and colleague catch ups is where the piking happens most.

Avoiding the awkies

Seems some of us will go to extreme lengths to avoid the awkwardness that results from our bad bailing behaviour and will RSVP at the last minute (17%), send word with someone else (16%), avoid posting on social media what we’re doing instead (13%), avoid all contact with the organiser (10%) or avoid telling the organiser altogether (7%). The worst culprits, 20-34 year olds.

What happened to mateship?

The people who we are most likely to ditch are colleagues (41%) and friends (40%). Only 3% are most likely to bail on partners (phew!) and 16% on family events. We are most likely to cancel our attendance at work functions (24%) and casual catch ups with friends (22%). Conversely, 34% of 20-24 year olds are more likely to bail on drinks with friends than on work functions (7%).

Excuses, excuses

The fall back excuse for last minute cancellations is feeling unwell for 66% of us. Family commitments are the next most used excuse at 36%, and a sick family member at 23%. Lame excuses such as stuck in traffic (6%) and a sick pet (4%) make the list. Just 11% of people chose to fess up that they just don’t want to go.

Loving our downtime

For most of us, cancelling plans to go out means we’ve chosen instead a night spent relaxing on the couch (34%), sleeping (32%), watching TV (23%), or hanging out with a loved one (30%).

It’s really interesting to see the rising trend towards staying in. It demonstrates the impact that technology has on every aspect of our lives – including redefining our social interactions and what that means for human relationships in the future. An indulgent night in and eating a favourite dessert in front the TV is fast becoming a socially acceptable and often, preferred form of entertainment in our increasingly busy and complex lives.

Generation Y and Housing Affordability

Monday, October 24, 2016


As Australia’s leading social researchers, the senior research team at McCrindle are actively involved in media commentary. Last week our Principal, Mark McCrindle and Team Leader of Communications, Ashley McKenzie were featured in the media about Generation Y and their ability to access the housing market in Sydney.

Generation Y are today’s 22 – 36 year olds, and make up 22% of the Australian population (5.22 million). They also make up the largest cohort in the current workforce (34%). Gen Y’s are comprised of today’s parents, senior leaders, influencers, and increasingly wealth accumulators. With 1 in 3 being university educated (compared to 1 in 5 Baby Boomers), they have grown up in shifting times and are digital in nature, global in outlook and are living in accelerated demographic times.

While Generation Y are often accused of living a lavish lifestyle, which supposedly locks them out of the property market, it is important to remember that traditional expense categories such as food, transport, health and housing costs are higher for younger people today than that experienced by their parents at the same age. A generation ago the average house price was 5 times annual average earnings while today the average house price is 13 times the average annual full-time earnings.

Here is a quick snapshot of last week’s media coverage:


Housing Affordability Debate

"From the Baby Boomer perspective, they worked hard, they earned what they had but I can also see the Gen Y perspective. The reality is that it's a lot harder to buy a home, the costs have gone up. Gen Y do have to pay off the debt of their degree and there are new categories of spend; technology, internet and phone, costs that their parents didn’t have."  


Parental help becoming essential for young people trying to buy property

"Ms McKenzie, who works for social researcher Mark McCrindle, said borrowing from parents was becoming Sydney’s “new normal”. “Baby Boomers control about 50 per cent of the nation’s wealth so it makes sense young people look to their parents for help,” she said." 












For any media enquiries please email us at info@mccrindle.com.au, or call our offices on +61 2 8824 3422. To arrange a media interview or if you are a journalist and would like to receive our media updates, please email kim@mccrindle.com.au.

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

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

Wealth and Income Distribution State V State

Monday, July 25, 2016


Australia has long been considered the land of the middle class, but in recent years the gap has been widening between the rich and the poor. When it comes to the battle of the states, which corner of Australia scores the highest and the lowest on the income and wealth report? Will the Baby Boomer generation continue their stronghold on our national wealth?

Is Australia still the land of the middle class?

It is hanging in there, but it’s under pressure. We have seen some hollowing out in the middle of the earnings and a bit of spread to either end. The average annual household earnings are around $107,000 however the lowest fifth of households earn 20% of this while the top fifth average almost three times this. That means that the top fifth of households are taking home about 12 times what the bottom fifth of households are earning.

Most Aussies have their wealth tied up in their homes, how does ownership compare with the top, middle and lower classes?

The average wealth (if you liquidate everything and pay off all your debts, what are you left with) is about $800,000. The bottom 1 in 5 have a net worth of just $35,000, the top 20% of all household have a net worth of about $2,500,000. That means that the top fifth of households have about 62% of Australia’s wealth, and the bottom fifth take less than 1% of Australia’s national private wealth. So that's a big difference in wealth across these households.

Which states are best and worst performers when we are looking just at income?

The mining boom in WA has really done a great thing over there and so they are leading the earnings chart, with the ACT not too far behind with public servant wages doing pretty well. At the bottom of the tree you have Tasmania, earning about $50,000 less per annum, per household, than what we have in the west.

Homes of the Future: Mark McCrindle discusses housing trends

Thursday, June 16, 2016

What is shaping our built environment?

The first is population growth. Australia has just reached 24 million which means we have added an extra million people in less than 3 years, and most of this growth is in our larger capital cities. This is creating a shift from suburban to urban living; from the traditional horizontal communities to the new vertical ones. In our largest capital cities, two-thirds of all new housing approvals are high or medium density rather than detached homes. This densification is creating walkable communities, multi-use areas where people live, work and play in a more localised space, and of course increased access to transit and transport hubs. The other factor shaping developments is affordability. With rising house prices, Australians are looking for financially sustainable options which meet the needs of both lifestyle and affordability, and create the flexibility for our homes to change in tune with our needs and lifestyles.

What are the current trends and will they last?

While design trends come and go with the changing fashions, there are some broader development trends that are here to stay. The increased access to open spaces, in-door out-door areas, balconies, natural light and bringing vegetation into urban environments are all timeless trends that resonates with our temperate climate and needs. Similarly, with food central to our social environment, open-plan kitchens and meal areas in homes and open social spaces in offices are trends we will see continue.

How is technology affecting it?

Today’s technology is seamlessly integrated into our lives, and we are seeing the same seamless integration into our homes. The internet of things means that lighting, sound, temperature, entertainment and security in our domestic environments are all manageable through our personal devices. The decade ahead will see our pantries and fridges talk to our devices to update shopping lists, our home entertainment experience continue playing seamlessly on our portable devices and our hydrogen cars help power our homes.

Image source: The Clipsal Smart Home range (courtesy of www.clipsal.com)

What are the demographic trends?

Homes of the future will have the flexibility to accommodate multiple generations living under the one roof. They will meet the changing needs of a more culturally diverse community and have clever innovations to facilitate support to Australians living independently in their homes to a much older age than we currently see.

What does the future hold?

While Generation Z, who are just starting their careers, will have to pay more for their homes in the future, these buildings and the built environment in which they sit will far exceed what their parents experienced in their first homes. Not only will the technologies and fittings in the home be exciting but the community spaces, café culture and neighbourhood amenities will continue to adjust and adapt to meet the lifestyle expectations of the 21st Century generations.

Working from home – is it always the best option?

Wednesday, January 20, 2016

Working from home can facilitate enormous benefits; allowing more time with family, avoiding long commutes and offering better work-life balance, but is this always the best option? 

While teleworking might have some benefits of flexibility for the individual, it can unintentionally create an isolated wasteland back in the office. It can significantly impact team culture by removing the intangible ingredient of collaboration and spontaneous interactions where some of the greatest innovations are sparked, problems are solved and teams are energised.

With 1 in 12 people working from home, this growing trend is enabled by communication technologies facilitating far greater flexibility, connectivity and mobility. Our research found the top three reasons people work at home are:

  1. Flexibility – to juggle other things, including managing the kids
  2. Improved work-life balance – avoiding that 53 minute commute, which Australians do on average every day for work
  3. Working undistracted – our workplaces can be busy hubs of activity and home can provide a quieter place to think and work – however can be faced with household distractions – like that sudden motivation that overtakes you to put a load of washing on!
Whilst working from home can facilitate these areas of life, it is not necessarily the most productive way to work.  It can be a far more effective use of time to have a quick team meeting to get everyone on the same page, problem solve and generate ideas rather than everyone needing to be kept up to date on an email chain.  Communication technologies can enable greater efficiencies – however they will never be able to replace face to face interaction and collaboration that occurs when teams meet together.

An event recap of the Urban Living Index launch

Monday, December 14, 2015

It was a privilege for two of our team, Mark McCrindle and Annie Phillips to attend and present at Urban Taskforce’s launch of the Urban Living Index on Thursday 10th December.

The event was an opportunity to showcase the Urban Living Index and how it can be best utilised as Sydney continues to grow and increase in densification.

The Urban Living Index

Earlier this year we had the opportunity to develop The Urban Living Index, which is going to be used as an ongoing measure for the liveability of suburbs in Sydney. This instrument considers the affordability, community, employability, amenity and accessibility of an area to determine how liveable it is. The challenge for Sydney’s future is to ensure that it responds to population growth yet maintains its world-beating lifestyle and that its liveability rises to match its increasing density. While a city can always improve, the results of the Index show that the city planning and unit development are creating thriving urban communities, as evidenced by the results that show superior liveability in high density Sydney suburbs.


To read the full report, visit the Urban Living Index website here.





Sydney’s most liveable suburbs

Crows Nest-Waverton
Surry Hills
Pyrmont-Ultimo
Marrickville
Potts Point – Woolloomooloo

In the media




Sydney Morning Herald - Measuring urban living across Sydney








Sydney's most liveable suburbs: The urban living index

Thursday, November 19, 2015

With Sydney’s population set to reach 5 million next year, there are significant densification trends underway. Sydneysiders are increasingly embracing medium and high density housing, 7 in 10 either have lived in a unit/apartment or are currently living in one. Of Sydneysiders who have never lived in a high density setting, 50% would consider unit/apartment living and this rises to 63% for Generation Y.

“Over the last decade there has been a big swing in Sydney to more urban living generally in apartments. To gain a clearer understanding of urban living patterns and satisfaction Urban Taskforce Australia commissioned McCrindle, experts in researching demographic data to develop the Urban Living Index.”, said Urban Taskforce CEO, Chris Johnson.

Mark McCrindle, Principal of McCrindle Research says, “The challenge for Sydney’s future is to ensure that it responds to population growth yet maintains its world-beating lifestyle and that its liveability rises to match its increasing density, and that is why we have developed the Urban Living Index.”

CHECK OUT THE URBAN LIVING INDEX WEBSITE HERE, TO DOWNLOAD THE FULL REPORT

Measuring the liveability of areas across Sydney

The Urban Living Index is an ongoing measure of the liveability of suburbs in Sydney. This instrument considers the affordability, community, employability, amenity and accessibility of an area to determine how liveable it is.

The Planning Regions of Sydney

The NSW Planning Regions were developed by the NSW government to allow for cohesive and integrated planning under A Plan for Growing Sydney. Exploring the Index across the six regions assists in understanding how they are equipped to respond to a high density population and where there are opportunities for improvement in the quality of urban living.

Sydney’s most liveable suburbs

This analysis of Sydney’s 228 suburbs shows that Surry Hills and Crows Nest - Waverton are Sydney’s leaders with the top rated Index of 85. In the Central planning region after Surry Hills was Marrickville with 83, in the North it was North Sydney – Lavender Bay with 82, West Central was Parramatta – Rosehill 80 followed by North Parramatta 75, South was Hurstville 76 followed by South Hurstville – Blakehurst 74, South West was Liverpool – Warwick Farm 66 followed by Cabramatta – Lansvale and West was Springwood – Winmalee 59 followed by Blaxland – Warrimoo – Lapstone 59. The results show a strong correlation between high density housing and urban liveability with seven of the top ten rated suburbs in the top twenty highest density suburbs in Sydney.

Sentiment toward housing affordability

One of the key drivers of the growth in high density housing is Sydney’s housing affordability challenge. When Sydneysiders were asked if they had to start over and buy into the current property market, more than 3 in 5 (61%) of Sydneysiders would probably or definitely be unable to do so. Sydneysiders are also not convinced that the affordability challenge will change with 51% saying that in three years’ time their area will be less affordable than it is today, and only 11% saying it will be more affordable. This is even higher in the West planning region where 56% say it will be less affordable. It is also higher amongst Generation Y (56%) than Baby Boomers (47%). More than half of all Sydneysiders (59%) say that Sydney’s housing affordability is a massive challenge for their children’s generation with an additional 29% saying it is a significant challenge.

More than half of all Sydneysiders (57%) state that the construction of units and apartments assists affordability. More than a third of Sydneysiders support the idea of allowing first home buyers to access their superannuation to buy a home (37%) and increasing unit/apartment construction (36%) while only 1 in 5 (22%) supports the tightening of bank lending rules as a solution to affordability.

The most valuable assets of Sydneysiders

When it comes to housing, Sydneysiders prioritise the intangibles (location and community) above the tangibles (buildings and fittings) by a factor of 2 to 1. They also prioritise current liveability above long term price growth, also by a factor of 2 to 1 and value walkable communities above more mobile lifestyles by a factor of 6 to 1. Sydneysiders generally like their local community assets such as shops and cafes with more than half (52%) saying they totally love or really like them compared to just 6% who are indifferent to this amenity. Twice as many (32%) believe that amenities in their local community will increase over the next 3 years compared to those who think there will be a decrease (16%). Sydneysiders are also positive about the growing infrastructure, transport and accessibility of their local area, with 37% expecting it to increase over the next three years compared to 14% expecting a decrease.

The Urban Living Index report, interactive maps and further details on Sydney’s six planning regions are all available at www.urbanlivingindex.com. The Urban Living Index results and rankings will be launched at a breakfast event at Clayton Utz, Level 5 1 Bligh Street, Sydney on the 10th December 2015, 7:30am for 8am start. Speakers will be Chris Johnson and Mark McCrindle.


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