Australia wealth gap widens as housing costs reshape living patterns

Australia is experiencing a widening wealth gap driven by asset ownership rather than income alone. Evidence presented to a Federal Senate inquiry into intergenerational housing revealed that between 2003 and 2022, nearly 22% of all wealth created in the country flowed to just 4–5% of the wealthiest households.

This disparity is attributed to the growth of appreciating assets, which allows existing owners to accumulate wealth faster than those relying solely on wage increases. New market entrants face significant barriers, including higher property prices, larger required deposits, and increased borrowing costs.

Rising housing costs are also fundamentally altering living arrangements. According to the Sharehouse Generation Report 2026, sharehousing is no longer limited to younger demographics; individuals aged 40 and over now account for 43.5% of respondents in a study of those forming or reforming shared households. Affordability remains a primary driver, with 74.6% of respondents stating that high property prices have extended the duration they expect to live in shared accommodation. Furthermore, 31.2% of those surveyed do not believe they will ever own a home.