But new research has shown how housing markets also shape people. A home owner sitting passively on the property market sideline can find themselves wealthy overnight if they happen to live in a boom suburb. Conversely renters can be further priced out of home ownership if the market takes off around them.
These property market dynamics are creating new social classes according to research from University of Melbourne Lecturer in Urban Geography Ilan Wiesel.
Younger generations in particular will find themselves divided into very different classes compared to their parents’ generations.
Check out the classes he has identified and see if you’re now part of Australia’s new housing elite.
- The Renting Class is the new term for working class. The challenge for this class is to save enough income after expenses to get a foot on the property ladder to set themselves up for retirement and pass on wealth to their kids.
- The Home-Owner Class has about half of their wealth held in their own home. They benefit from successive housing booms and may benefit further from housing wealth passed on through their baby boomer parents.
- The Housing Elite are those who have wealth in their own home as well as investment wealth in property and shares. The top 20 per cent of the wealthiest Australians hold most of their wealth in their home and in other investment properties.
Renting class and proud of it? Check our listings for rent.