Australians have become richer and baby boomers are at the top of the tree.
Roy Morgan’s Wealth Report 2023, shows Australia’s wealth increased by 7% between March 2020 and March 2023.
The increase was mostly driven by an increase in the value of owner-occupied homes, up by 43.2%, from $4.16 trillion to $5.95 trillion.
It says half of the Australian population, predominantly homeowners, account for 95.4% of Australia’s net wealth.
Baby Boomers benefit significantly from the rise in property values as they have the highest rate of home ownership in Australia.
They were able to buy at a time when housing was more affordable, and they reaped the benefits of rapid price increases.
As their university education was free, many were able to enter the housing market not loaded down with HECs debts.
Successive interest rate rises by the RBA mean one-third of mortgage-holding households, particularly Generation X and Millennials, have experienced a 50% increase in mortgage repayments.