Did you know that Baby Boomers own over 60% of Australia’s housing wealth?

Some reports say that figure climbs as high as 70% when you include mortgage-free property and investment homes.

This concentration of property wealth isn’t just a stat — it’s reshaping Australia’s property market, creating a wealth gap, and setting up one of the largest intergenerational wealth transfers in history.

In this article, we’ll explore:

  • How Baby Boomers came to own so much property

  • Why this is creating financial stress for younger generations

  • The economic and family risks it presents

  • And most importantly, the wealth creation opportunities available if families plan ahead

Over 60% of Australia’s housing wealth is held by Baby Boomers — but who will benefit when it changes hands?

How Baby Boomers Built Massive Housing Wealth

In Australia, Baby Boomers (born between 1946 and 1964) were the primary beneficiaries of the property boom. Here’s why:

  • Affordable entry prices: Boomers bought when median house prices were around 3-5 times the average income.

  • Long-term capital growth: Australian property values have increased over 400% in the last 30 years.

  • Low mortgage debt: Most Boomers have paid off their loans and now hold unencumbered properties.

  • Tax benefits: Boomers enjoyed generous negative gearing and capital gains tax discounts.

This means older Australians now control the majority of property wealth in Australia, while younger generations face higher entry costs, rising interest rates, and stagnant wage growth.

"It’s not a housing crisis. It’s a wealth transfer waiting to happen — if your family’s ready for it."

The Problems Created by Housing Wealth Inequality

The concentration of housing wealth in the hands of Baby Boomers is creating real challenges for families, individuals, and the broader economy:

1. Housing Affordability Crisis

Younger Australians are struggling to buy their first home as property prices continue to climb beyond reach.

Read: How a ‘lost decade’ of low wage growth stopped young Australians from buying homes

2. Intergenerational Wealth Gap

Without clear estate planning, this wealth gap can fuel financial tension and missed opportunities across generations.

Read: The Growing Intergenerational Housing Wealth Divide

3. Rental Market Pressure

With more people unable to purchase property, demand for rental properties increases, driving rents higher.

Read: Australia’s Housing Crisis

4. Family Disputes

Family disputes over property and financial decisions can emerge without structured conversations about wealth transfer and inheritance.

Read: High stakes inheritance as Australian Baby Boomers transfer $3.5 trillion in wealth

5. Economic Inefficiency

When so much capital is tied up in unproductive real estate, it limits financial flexibility and innovation in the economy.

Read: Why the $5.4 trillion wealth transfer is a generational tragedy

The Hidden Opportunity in Australia’s Housing Wealth

While the headlines often paint this as a crisis, there’s a massive opportunity for families prepared to act.

✅ The Great Intergenerational Wealth Transfer

Over the next 10-20 years, trillions of dollars in property and financial assets will pass from Baby Boomers to their children and grandchildren. Strategic financial planning can ensure this wealth is passed on tax-effectively and without family conflict.

✅ Downsizing Incentives

The Australian Government offers tax incentives for older Australians to downsize and contribute the proceeds to their superannuation. This can free up property stock for younger families and improve retirement lifestyles.

✅ Family Wealth Strategies

Families can pool resources to help younger generations buy their first home, invest in property together, or leverage family equity to access better lending terms.

✅ Open Financial Conversations

The sooner families start talking about property wealth, inheritance plans, and financial goals, the more opportunity there is to create financial wellbeing for everyone.

The biggest financial opportunity of your family’s life might already be sitting in your own backyard.

💡 Key Statistics

Here are some of the eye-opening facts:

  • Baby Boomers own over 60% of Australia’s housing wealth (CoreLogic, ABS)

  • The average net property equity of Australians aged 65+ exceeds $1 million in many metro areas

  • Australia is set to experience a $3.5 trillion intergenerational wealth transfer over the next two decades (Productivity Commission)

🔥 How to Take Action

If your family is sitting on significant housing wealth, the time to plan is now — not when the will is being read.

At Inspired Money, we help families:

  • Protect and structure intergenerational wealth

  • Navigate estate planning and inheritance conversations

  • Leverage family property wealth to help the next generation succeed

📩 Ready to have the conversation?

Book a free family wealth strategy session today. Call 08 6222 7909 or email support@inspiredmoney.com.au.

Written by

Inspired Money