Surging house prices increasing financial gap
Australia is becoming wealthier, yet the financial divide between young and old Australians in increasing. New evidence from the Australian Bureau of Statistics suggests this gap is widening, as older Australians are capturing an increasing share of the nation’s wealth, and that property prices are are the major cause of financial disparity between the two generations. Evidence, such as the fact that Households headed by 65-74-year-olds were on average A$480,000 wealthier in 2015-16 than households in the same age group 12 years ago. So what is the main factor affecting this wealth divide? What are young people doing as a result? Danielle Wood, Budget Policy and Institutions Program Director at the Grattan Institute, joined us this morning.
