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


Tags

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

Archive