As the baby boomer generation downsizes and shifts their wealth into cash and retirement accounts, a new analysis has revealed that Generation X households now hold the most property wealth of any demographic in Australia.
According to data compiled by KPMG, Gen X households – those born between 1965 and 1980 – hold an average of £1.455 million in housing and land assets. This figure outpaces the £1.36 million in average property wealth held by baby boomers, who remain the wealthiest generation overall due to their substantial superannuation holdings and relatively low debt levels.
“The data shows a generational passing of the baton when it comes to property riches, which remain a cornerstone of Australian household wealth,” said Terry Rawnsley, an urban economist at KPMG. “While baby boomers are still the wealthiest, Gen X have emerged as the new dominant property owners.”
In contrast, the average property wealth for millennial households aged 29 to 44 sits at just £890,000, reflecting the lower rates of home ownership among younger Australians. Rawnsley noted that with housing affordability at record lows, home ownership for younger cohorts has plummeted, posing a significant risk of rising intergenerational inequality.
“If you miss out on that property purchase when you’re in your 20s or 30s, the impact on your wealth can last for the next 30-40 years,” Rawnsley warned. “Being a ‘forever renter’ is no longer just a lifestyle choice – it can mean locking in generational disadvantage, not just for yourself but for your children as well.”
While government schemes aimed at assisting first-time buyers have faced criticism for simply fueling further price rises, Rawnsley took a contrarian view. He argued that paying 1-2% more for a home due to such schemes could be worthwhile if it allows buyers to enter the market years earlier, rather than being forced to rely on the “Bank of Mum and Dad.”
As the property wealth gap widens between generations, policymakers will face increasing pressure to address the growing issue of intergenerational inequality in the housing market.
