New analysis has revealed Gen X households overtaking Baby Boomers in property holdings amid a brewing generational asset shift.
KPMG on Thursday (22 January) unveiled its 2024–25 Household Wealth Analysis, with the study showing Gen X households (born 1965–80) now commanding the top spot in dwellings and land value at an average of $1.46 million, narrowly surpassing Baby Boomers’ $1.36 million.
The shift marks a turning point in Australia’s wealth dynamics, as older generations rebalance their portfolios away from real estate toward more liquid options.
Despite ceding ground on property, Baby Boomer households (born 1946–64) maintain their crown for overall net worth, clocking in at $2.38 million to $2.46 million on average.
This dominance stems from substantial holdings in cash deposits averaging $220,000 and superannuation plus insurance reserves at $630,000, underpinned by minimal debt of just $160,000.
In stark contrast, Gen X is grappling with $425,000 in loans, even as they lean hard on property.
KPMG urban economist Terry Rawnsley connected the pattern to broader life cycle changes and said the “great wealth transfer” was in full swing as Baby Boomers started to downsize their properties and move wealth into cash.
“They are also beefing up their super accounts as they begin to spend in retirement or hand down wealth to their children. This has meant Gen X is atop the mantel as the wealthiest property owners,” he said
Gen X’s total net worth sits at $2.18 million, with notable strengths in shares ($235,000) exceeding Boomers’ $180,000, while their average cash deposits came in at $195,000.
Millennials (born 1981–96), however, recorded a net worth of $905,000, with $890,000 in property failing to offset $460,000 loans.
Unpacking the generational drag, Rawnsley said for the average millennial household, the property they owned was “largely a liability”.
“This explains why their net worth is less than the average value of their property,” he said.
Youngest cohorts charge ahead amid barriers
Households headed by 25–34-year-olds delivered the sharpest wealth acceleration over the past five years, vaulting 63 per cent from $340,000 in 2019–20 to $553,000 in 2024–25.
The surge rode a wave of home purchases enabled by low interest rates seen in 2020–21.
Property values for the group average at $575,000, yet $346,000 loans – frequently layered with HECS debts – leave the cohort as the nation’s most indebted demographic.
“This increase was largely driven by increased home ownership of young Australians, sparked by ultra-low interest rates in 2020 and 2021. However, with interest rates now at much higher levels that home ownership window is now firmly closed,” Rawnsley said.
Older brackets fare even stronger, with 45–54-year-olds recording a net worth of $2.05 million, featuring $1.44 million in property, $278,000 in shares, and $509,000 in super.
Leading the pack are 55–64s who have a net worth of $2.51 million.
Those 35–44s manage $1.07 million against $531,000 debts, while over-65s grew modestly by 43 per cent as they tap assets for mounting living costs.
Yet gaps remain stark, with 55–64 households possessing double the wealth of 35–44s and 10 times that of 24–34s.
Property’s grip tightens, alternatives emerge
The report found that real estate continues to define Australian wealth creation.
Gen X’s property supremacy reflects Boomers’ strategic unwind – as the age bracket channels equity into transfers, while soaring rates exclude many under 30 from similar trajectories.
Rawnsley emphasises housing’s exclusionary effects and said property advantaged some age groups over others.
“The new analysis highlights the importance of property to wealth generation in Australia and how it is benefiting specific age groups that have managed to get a foot on the property ladder,” he said.
“For young Australians able to get into the market they are starting to see strong growth, but for those aged under 30, many of whom have been locked out of housing, wealth accumulation will be a much tougher task.”
Looking ahead, he anticipated further behavioural shifts and said increasing difficulty in entering the housing market could turn younger Australians towards other wealth categories.
“The 25–34 age group shows more distinct differences, many young people in this group are just entering the housing market, which leaves them with large mortgages,” he said.
“Combined with HECS debts, this makes them the most leveraged generation with an average loan size of 346,000. With many young people locked out of the housing market, we may see more of this generation focus on share portfolios as a more accessible way to build wealth.”
