Australian households just keep getting wealthier.
A combination of surging property prices and solid sharemarket gains saw total Aussie household wealth grew 4.4% or $590 billion in the September quarter.
Wealth is up 20.2% on a year ago – the strongest annual gain in 11 1/2 years.
Australia's total household will hit an all-time high of $13.9 trillion, with wealth per person of $540,179 also sitting at record levels.
"Residential property assets can tribute at 3.5 percentage points to the quarterly growth in household wealth.
Increases in currency and deposits, and superannuation balances, at 0.6 and 0.4 percentage points also contributed to the growth in household wealth. Offsetting this was an increasing household loans which detracted 0.3 percentage points from growth."
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How is wealth measured?
These measurements are of net household wealth by estimating the difference between the value of household assets and liabilities or debts, so even though we have taken on further debt our assets have grown significantly more.
Of course wealth and income at two different things. Income refers to wages, salaries, pensioners, and other government payouts.
So while wages growth remains tepid the value of assets is surged supported by record low-interest rates, government pandemic stimulus measures, and the labour market recovery over the past year.
Interestingly, Commonwealth Bank economists estimate that Australians have amassed around $240 billion in excess savings during lockdowns, enabling those "stuck at home" to invest in assets such as property and shares.