Baby boomers are often blamed for exacerbating Australia’s housing shortage, accused of profiting from rising rents on investment properties and holding onto their homes rather than downsizing as they get older.

However, a new analysis casts fresh light on the generation household wealth divide.

It shows that gen Xers – those born between 1965 and 1980 – now have the most wealth in dwellings and land, with an average of $1.445 million, compared to baby boomers’ holdings of $1.36 million.

KPMG urban economist Terry Rawnsley described the shift in asset ownership as “the great wealth transfer” – and said it was in full swing as boomers, now aged between 61 and 79, finally start to downsize and move their 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,” Rawnsley said.

“This has meant gen X is atop the mantel as the wealthiest property owners.”

KPMG’s analysis shows gen Xers also have more money invested in shares than the older generation, but owe significantly more in loans, reflecting the fact that many are still paying off homes.

When it comes to overall net worth, boomers come out on top with an average net worth of $2.46 million compared to Xers’ almost $2.2 million.

For many millennials, the property they own is still largely a liability. Photo: Getty

Not surprisingly, millennials – those aged 29 to 44 – have significantly less wealth in dwellings and land than both the earlier generations: An average of $890,000. Their net worth is only slightly more, at $905,000.

Unfortunately, the only category where millennials come in first place is debt, with an average of $460,000 owed in loans.

“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 said.

The data highlights how important property is to wealth generation, as well as the roller-coaster many Australians have ridden as a result of fluctuating interest rates and the booming property market.

Its release coincides with predictions that another rate hike could by on the horizon after a surprise drop in unemployment, creating nervousness among mortgage holders of all generations.

Source: KPMG

KPMG found that young Australians (the 25–34 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.

“However, with interest rates now at much higher levels, that homeownership window is now firmly closed.”

Over the same period, a rising housing and share market helped households in the 45-54 and 55-64 age groups to also record strong gains in wealth.

Overall, the analysis concluded that “stark disparities remain” between the generations.

“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.

He predicted that young Australians who haven’t been able to get a foot on the property ladder may focus more on share portfolios as a way to build their wealth.

Significantly, the rise in compulsory superannuation contributions means younger Aussies will also accumulate more wealth from their super than their parents did.

“Super will play a far more central role in young Australians overall financial security, meaning the patterns of contributions and withdrawals could diverge significantly from what we see among today’s retirees,” KPMG asset wealth management sector leader Robyn Annett said.