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


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