Property wealth shifts to Gen X

Boomers have long been seen as holding the wealth and property cards, but a new report suggests that Gen X households have moved up to take on the mantle.

In its latest analysis of household wealth across birth cohorts, KPMG found that Gen X households hold the most wealth in property and shares of any generation, although Baby Boomers continue to have the highest net worth.

Baby Boomer households remain the wealthiest, with an average net worth of $2.46 million with the highest amounts of cash and superannuation, highlighting their shift towards more liquid assets in retirement.

Gen X households have the most wealth in dwellings and land, with an average of $1.445 million, compared to Baby Boomers’ holdings of $1.360 million. Both generations are leaps ahead of Millennials who own $890,000 in property.

KPMG Urban Economist Terry Rawnsley remarked that the shift in asset ownership highlights the acceleration of the great wealth transfer.

“The great wealth transfer is in full swing, as Baby Boomers start downsizing properties and moving that 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”, Rawnsley added.

Behind Baby Boomers, Gen X households still have an average net worth of almost $2.2 million, then there is a significant drop to Millennials at an average of $905,000.

“For the average Millennial household, the property they own is still largely a liability which explains why their net worth is less than the average value of their property”, Rawnsley explained.

In terms of cash and deposits (which can also include money sitting in home loan offset accounts), Baby Boomers lead with $220,000, followed by Gen X at $195,000 and Millennials at $115,000.

Millennials have the largest amount of debt at $460,000, followed by Gen X with $425,000. Baby Boomers generally have very little with only $160,000, as the home loan and other debts have mostly paid off by their age.

The 25–34 year household age group recorded the largest five-year increase in household wealth, rising by 63 per cent from $340,000 in 2019–20 to $550,000 in 2024–25.

“This increase was largely driven by increased home ownership of young Australians, sparked by ultra-low interest rates in 2020 and 2021,” Rawnsley said.

Households in the 45–54 and 55–64 age groups recorded strong gains, with wealth growth of around 55 per cent and just under 50 per cent respectively as they have all benefited from a rising housing market.

Older households experienced slower growth, with those aged 65+ increasing by 43 per cent as retirees draw down assets, such as superannuation and home equity, to fund retirement.

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.

"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,” Rawnsley said.

For households aged 45–54, property dominates their wealth, peaking at $1.443 million. They’re also well diversified, with $278,000 in shares and $509,000 in superannuation. This wealth profile is reflecting a lifetime of super contributions and exposure to the share market and purchasing home when they were more affordable.

There is a similar level of wealth for the 35-44 age group, but they have clearly had less time to climb the property ladder with an average housing wealth of $1.052 million. The report suggests they have also had less time to pay down debts with slightly higher average loans compared to the 45-54 age.