Australian households have never been wealthier thanks to the pandemic surge in housing prices, with their overall wealth hitting a record $14.9 trillion.
But many Australians are starting to cut back on their spending where they can as the cost of living rises, while two major banks are now tipping there will be three super-sized interest rate hikes in a row.
Total household wealth in Australia rose by $173 billion or 1.2% to a record $14.9 trillion in the March quarter, Australian Bureau of Statistics data released on Thursday showed.
The average wealth per person also reached a record $574,807 – a rise of $3695 over the quarter but a massive $146,008 increase since the start of the pandemic.
ABS head of finance and wealth Katherine Keenan said residential property assets continued to drive increases in household wealth.
“While the pace of property price growth started to moderate, with falls in Sydney and Melbourne this quarter, other capital cities and regional areas rose, resulting in an overall rise in house prices of 1.9% nationally,” Ms Keenan said.
Household wealth or their net worth has jumped by 35.3% during the pandemic, with the strength of the housing market accounting for most of the growth since the March quarter 2020.
The ABS said residential property assets have risen by 39.9% since the start of the pandemic, while superannuation balances increased 22.5% as share markets gained ground.
Source: Home prices drive record $14.9 trillion wealth, but Aussies cut back spending, Megan Neil for Realestate.com.au