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KPMG Analysis Shows Australian Median Household Wealth Unchanged Over Five Years While Wealth Gap Widens

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Australia's Wealth Divide: Property Gains Fuel Growing Inequality

Median household wealth sits at $700,000, while average wealth surges to $1.56 million—a 24% real-term increase that highlights a growing divergence between Australia's wealthy and everyone else.

Key Wealth Indicators

According to KPMG's analysis of Australian Bureau of Statistics and census data:

  • Australia's median household wealth remained relatively unchanged at approximately $700,000 between 2019/20 and 2024/25.
  • The average household wealth increased by 24% in real terms over the same period, rising from $1.26 million to $1.56 million.
  • Households with net wealth of $1.6 million and above now account for 22% of all households, up from 15% a decade ago. This segment is growing at 7% annually, compared to overall household growth of 2.1%.
  • The proportion of households in the middle-wealth bracket ($300,000–$900,000) has declined from 34% to an estimated 28% over the past ten years.
  • Households with net wealth over $900,000 now represent over 40% of households, compared to 32% a decade ago.
  • Approximately one-third of Australian households, equating to 3.35 million, hold less than $300,000 in net wealth.

Causes of the Wealth Divergence

KPMG urban economist Terry Rawnsley identified post-pandemic property price growth as a primary factor. House prices rose in major cities between December 2020 and December 2025: Sydney increased by 46%, Perth and Adelaide by 91%, and Brisbane by 86%, according to Domain data.

"Households already owning property or entering the market during the pandemic—when interest rates were near zero—benefited from this growth, while others did not."

Generational Property Wealth Trends

Gen X households (born between 1965 and 1980) now hold the highest average property wealth at $1.455 million, surpassing baby boomers, who average $1.36 million in property wealth. Baby boomers maintain higher overall net wealth due to their superannuation holdings and lower debt levels.

Millennials (aged 29 to 44) have an average household property wealth of $890,000. Households aged between 25 and 34 have an average of $575,000 in property wealth, offset by an average debt of $346,000.

Home ownership rates for older generations sit around 80%, compared to approximately 50% for younger households in the 25–34 age cohort.

Younger Home Ownership Rates

Analysis of home ownership trends among younger cohorts shows some variation. Individuals born between 1977 and 1981 achieved home ownership levels by their 40s comparable to those born in the preceding five years. Similarly, those born between 1982 and 1986 achieved rates similar to the 1977–1981 cohort by their mid-to-late 30s. These trends do not indicate that younger generations have reached the home ownership rates of the oldest baby boomers at a national level.

Housing Affordability Indicators

  • The average new loan for an owner-occupier dwelling has surpassed $700,000, up from $512,000 five years prior.
  • The ratio of typical home prices to median income has risen from approximately four times in the early 2000s to eight times nationally and ten times in major cities like Sydney.
  • As of 2025, saving a 20% deposit for a median-valued dwelling takes the median income household nearly 11 years.

Financial Stress Indicators

The Australian Bureau of Statistics General Social Survey (2025) reported:

  • 21% of households reported cashflow problems, up from 19% in 2020.
  • 25% of households reported they could not raise $2,000 within a week, up from 19%.

Policy Context

The KPMG analysis precedes the federal budget. Treasurer Jim Chalmers has identified "intergenerational fairness" as a budget theme. Policy changes under consideration include potential modifications to the 50% capital gains tax discount, adjustments to negative gearing rules, and increasing the minimum tax on discretionary trust distributions. Oxfam has called for a wealth tax, and a 2024 Australian National University paper noted that tax settings currently favor older Australians.

Factors Influencing Home Ownership

AMP chief economist Shane Oliver identified several factors that have assisted some younger Australians in entering the housing market:

  • Government schemes: First homebuyer grants and lower minimum deposit requirements (such as 5% deposit schemes).
  • Competitive banking: Options including longer loan terms and interest-only loans.
  • Intergenerational wealth transfer: Financial assistance from parents and inheritances from older generations.

Rawnsley offered a view on first home buyer schemes, stating that while they may contribute to a slight (1–2%) increase in property prices, the benefit of enabling individuals to enter the market years earlier and save on rent could outweigh this disadvantage for those without familial financial support.