‘Noteworthy’: Millions of Aussie households make $25k amid new data

Millions of Aussie households have been bringing in the bacon without lifting a finger.

Millions of Australians have earned about $25,000 in the last year without lifting a finger, in a trend economists have labelled as “noteworthy”.

New ABS data has shown that household wealth has risen for a sixth consecutive quarter by 2.7 per cent.

The data means Australians who own their home outright or have a mortgage – nine million people – have increased their overall wealth by an average $25,000 in the past year to the March quarter.

Speaking to the ABC, ANZ economist Madeline Dunk said this figure was expected to rise in the coming months as property prices continue to grow.

The trend is expected to continue for quite some time according to economists. Picture: iStock

“It’s noteworthy,” Ms Dunk said.

“It’s something the RBA have noted before that potentially that wealth effect is supporting household consumption.

“Consumer confidence is higher for those people who own their home outright, compared to renters, and those paying off a mortgage.

“Of course we know the hit on real household disposable income has been greater for those people paying off a mortgage in particular.

“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.”

The Australian dream is only getting further out of reach. Picture: iStock

The wealth effect is having more of an effect than even with alarming new figures showing home seekers are increasingly relying on the bank of mum and dad to get their slice of the Aussie dream.

Digital Finance Analytics research released this week indicated the share of first-home buyers receiving funding from family had risen to 59 per cent, up from 3 per cent in 2010.

And those who don’t have access to this wealth are increasingly being left out in the cold, experts have warned.

“There’s a lot of privilege that comes from having parents who own property,” said Finder.com.au home loan expert Graham Cooke.

The divide between homeowners and renters is only getting larger. Picture: iStock

“The biggest challenge for most home buyers is getting together a deposit while prices continue to rise. And it’s not surprising this is what most parents provide help with. Those who can’t get this help can struggle.”

Originally published as ‘Noteworthy’: Millions of Aussie households make $25k amid new data