'Property speculators' paradise', Australian households earning $25,000 for doing nothing

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ABS data reveals a big lift in household wealth driven by Australia's white-hot property market.

Total household wealth was $16.2 trillion in the March quarter, which was $1.5 trillion higher than a year ago, according to ABS data.Increasing Australian wealth, generated by higher asset prices, might be impinging on the effectiveness of monetary policy, economists say.

Total household wealth was $16.2 trillion in the March quarter, which was 10.2 per cent higher than a year ago. "Rising asset values continued to drive growth in household wealth in the first quarter of 2024, with house prices continuing to increase," ABS head of finance statistics Mish Tan said."It's something the RBA have noted before that potentially that wealth effect is supporting household consumption," Ms Dunk said.But, economists say, older Australians who own their home outright are spending more than other cohorts.

"And if you look at some of the spending data too it does suggest that those people who are over 55 are generally tending to spend more and spend more on the fun stuff – they're going on cruises, they're still buying those indulgences that a lot of other people have cut back on."

 

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