The average Australian household’s wealth is rising, but this is being driven by a rise in financial assets, not from property.
The latest RBA chart pack shows a relatively steep decline in net wealth almost in tandem with a decline in dwelling values from 2009 to 2012.
However, since 2012 household wealth has been rising again (albeit still well off pre-GFC highs), while dwelling values have been flat.
Instead a rise in the value of financial assets – cash, shares, deposits etc – has driven the latest boost in household wealth.
Property – principally the family home – still makes up the bulk of household wealth.
This article first appeared on Property Observer.