Gen X Wins the Wealth Game: How They Overtook Boomers in Property and Shares

For years, Baby Boomers have been the undisputed champions of wealth in Australia.

They’ve been the generation with the most substantial property portfolios, the largest shareholdings, and the most secure financial futures.

But now, a quiet revolution is underway.

Generation X, the cohort born between 1965 and 1980, is stepping into the spotlight, poised to become Australia’s wealthiest generation.

Gen X: from underdogs to wealth leaders

KPMG’s analysis of asset distribution across four generational cohorts and reported in shows that until recently, Baby Boomers were Australia’s wealthiest generation, with an average net worth of $2.31 million.

However, Gen X isn’t far behind, with an average net worth of $1.88 million.

What’s more interesting is that Gen X has now surpassed Boomers in terms of property wealth, holding an average housing value of $1.31 million compared to Boomers’ $1.3 million.

While the margin might seem small, it signals a significant shift in generational wealth dynamics.

This change is no accident.

Boomers are downsizing, selling off family homes, and moving into retirement villages or smaller residences.

This has created opportunities for Gen X to acquire these high-value properties, leveraging their peak earning years and financial savvy.

It’s also a result of Gen X’s ability to adapt to changing market conditions, especially in property and share investments.

Source of image: The Australian

The power of property

Property has always been a cornerstone of Australian wealth, and Gen X has used this to their advantage.

With a strong understanding of market trends and an appetite for risk, they’ve built impressive property portfolios.

The rising value of housing in our capital cities has further bolstered their position.

Interestingly, this generational shift is occurring alongside a broader trend of intergenerational wealth transfer.

Over the next 20 years, Boomers are expected to pass down well over $3.5 trillion to younger generations.

While Millennials are often highlighted as the beneficiaries of this “great wealth transfer,” it’s Gen X who’ll benefit first, given they are the children of the Boomers.

Shares and super: diversifying wealth

It’s not just property where Gen X is shining.

They’ve also accumulated larger share portfolios, averaging $256,000 compared to Boomers’ $206,000.

This is partly due to Boomers de-risking their investments as they transition into retirement.

Gen X, on the other hand, is still in their prime earning years and has a greater appetite for growth-oriented investments.

Superannuation has also played a significant role.

Unlike Boomers, who spent a significant part of their working lives without superannuation, Gen X has benefitted from Australia’s compulsory superannuation system, which started in 1992 and had the advantage of employer contributions throughout most of their careers.

What this means for Millennials and beyond

While Gen X’s rise to wealth is impressive, it’s important to consider what this means for younger generations.

Millennials, often burdened with higher education debt and soaring property prices, face a tougher road to wealth accumulation.

However, the ongoing wealth transfer from Boomers and the eventual transfer from Gen X could provide a significant boost for Millennials and even Gen Z in the coming decades.

Lessons for investors

Gen X’s ascent offers valuable lessons for all property investors:

1. Leverage peak earning years: Gen X capitalised on their highest earning years to invest in property and shares. Understanding when you’re in your financial prime can help you make bold but calculated investment moves.
2. Diversify investments: While property remains a key wealth driver, Gen X’s diversified portfolios highlight the importance of spreading risk across different asset classes.
3. Think long term: Whether it’s superannuation or property investments, playing the long game has worked well for Gen X. They’ve weathered market downturns and come out stronger.
4. Adapt to market trends: Gen X has shown resilience and adaptability, especially in navigating economic shifts. Staying informed and flexible is crucial for investment success.

The future of wealth in Australia

As Gen X cements its position as Australia’s wealthiest generation, they’re shaping the future of property and investment markets.

However, this is more than just a story about numbers; it’s about strategy, adaptability, and the power of understanding the benefits of having a long term outlook and delayed gratification.

As we witness this generational shift, it’s a reminder that opportunities exist in every market—you just need the knowledge and confidence to seize them.

Whether you’re Gen X, Millennial, or beyond, the evolving wealth landscape offers lessons and opportunities for everyone.

The baton may pass between generations, but the principles of smart investing remain timeless.

About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.