KPMG on Generational Wealth Shift in Australia: Gen X Surpasses Boomers in Property Holdings

A recent analysis by KPMG has revealed that while Baby Boomers remain Australia’s wealthiest generation overall, they no longer hold the largest share of property assets or the most significant portion of shares. The study found that Generation X has overtaken Boomers in property ownership as Boomers increasingly sell their holdings or pass them down to their children.

According to Terry Rawnsley, an urban economist at KPMG, the trend reflects the natural progression of aging. He noted that Baby Boomers, who historically dominated housing assets, are now reducing their property portfolios as they transition into retirement.

Despite Generation X’s growing property share, the analysis highlighted persistent disparities in homeownership across generations. On average, Gen X boasts $1.31 million in housing wealth, slightly edging out Baby Boomers at $1.30 million. Millennials trail significantly with an average of $750,000, despite many being older than the typical first-home buyer of previous generations. Generation Z holds the smallest average housing wealth, at just $69,000.

The gap in wealth between generations extends beyond property. Gen X and Baby Boomers lead in shareholdings, with averages of $256,000 and $206,000, respectively. In stark contrast, Millennials and Gen Z average $51,000 and $7,000 in shareholdings.

Boomers maintain their advantage in cash and deposits, with an average of $242,000, contributing to their position as the wealthiest generation with a net worth of $2.31 million. This figure surpasses the net worth of Gen X ($1.88 million), Millennials ($757,000), and Gen Z ($96,000).

Rawnsley explained that these figures reflect the natural wealth accumulation lifecycle, wherein older generations have had more time to build assets and reduce debt.

However, there is a silver lining for younger generations in the superannuation category. The report noted that Millennials and Gen Z are starting from a higher base than their parents, which could lead to significantly greater wealth accumulation through superannuation over time.

This shift signals an evolving wealth landscape in Australia, shaped by generational transitions and differing opportunities for asset growth.

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