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


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