January 3rd 2025.
It's no secret that the Baby Boomer generation has long been known as the wealthiest in the country. However, a recent report by KPMG has revealed that they are no longer on top when it comes to property ownership and shares in Australia.
The analysis, released this morning, showed that Generation X has now surpassed their parents' generation in terms of property holdings. This is due to a combination of Baby Boomers selling off their properties as they enter retirement, and their children inheriting some of their assets.
According to Terry Rawnsley, an urban economist at KPMG, "Baby Boomers have historically held the largest share of housing assets, but as they age and retire, they are starting to downsize and sell off their property portfolios." This shift in ownership is reflected in the numbers, with Generation X now having an average of $1.31 million in housing wealth, just slightly ahead of Baby Boomers at $1.30 million.
However, the report also highlighted the stark difference in homeownership between younger and older Australians. Despite being in their mid to late 30s, Millennials only have an average of $750,000 in housing wealth, while Gen Z has the lowest average at just $69,000.
"Our findings clearly show a disparity in housing wealth between older and younger generations," says Rawnsley. This disparity is also evident when it comes to shares, with Gen X and Baby Boomers significantly ahead of their Millennial and Gen Z counterparts.
The report also looked at other assets, such as cash and deposits, where Baby Boomers have the most at $242,000, giving them the highest net wealth among all the generations at $2.31 million. "These net worth figures highlight the wealth accumulation lifecycle, where older generations have had more time to build assets and pay down debt," explains Rawnsley.
However, there is some good news for younger Australians. Despite having less in terms of other assets, such as superannuation and business holdings, they are starting from a higher base than their parents' generation. "This means the wealth they will eventually accumulate from super will be far higher than older generations," says Rawnsley.
In the midst of these findings, it's important to note that the transfer of wealth from one generation to the next has already begun. And while there may be some disparities between the generations, there is hope for the future as younger Australians start to build their own wealth. To stay updated on all the latest news, sport, politics, and weather, make sure to download the 9News app on the Apple App Store or Google Play.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
