How much wealth do Aussies have today? It's never been higher

How much wealth do Aussies have on a per capita basis?

asx shares in 2021 represented by sparkling gold numbers 2021

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Last year, one of the strange side-effects of the coronavirus pandemic was an overall increase in household wealth. A rapidly rebounding share market, coupled with a similar move in the national property market helped Aussies feel like there was at least some upside to the roller-coaster that was 2020.

Record governmental stimulus programs, such as JobKeeper and a temporary doubling of JobSeeker, also helped mightily. But how are Aussies faring in 2021 so far, now that much of this stimulus has been wound back?

Never better, according to the Australian Bureau of Statistics (ABS).

Rising tides of property and shares are lifting the Aussie wealth boat

The pandemic continues to see rising household wealth in Australia. At least that's what the latest findings from the ABS tell us. According to ABS statistics released last week, total household wealth managed to rise by 4.3% in the 3 months to 31 March 2021. That equates to a dollar figure of $510 billion, putting the total wealth pool in Australia at a record $12.66 trillion. Wealth per capita is also at a record high, sitting at $492,055 for every Australian at the end of the March quarter.

The annual numbers tell a similar story. In the 12 months to 31 March 2021, the ABS found that household wealth grew 15.3%. That was the strongest annual growth since March 2010 (22.6%).

So what do Aussies have to thank for all this wealth? The usual suspects, according to the ABS. That annual figure of 15.3% consisted of 8.5% from rising property prices. A further 4.2% came from superannuation balance growth. Here's what the ABS' Head of Finance and Wealth, Katherine Keenan, had to say on the rise in wealth:

Residential assets contributed 3.5 percentage points to the quarterly growth in household wealth, followed by superannuation balances and directly held shares, at 0.6 and 0.2 percentage points. Growth in household wealth continued to be driven by rising residential property prices, reflecting record low interest rates, support through a range of government incentives and recovery in the labour market…

Household wealth grew more in the last year than it did during the preceding three years combined. Over the three years prior to March 2020, household wealth grew 11.4 per cent.

So houses and shares… That's evidently how the Aussie wealth bread is being buttered right now.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Economy

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Economy

Here's the big four banks' revised interest rate predictions after the RBA left rates on hold

The RBA's decision shocked investors yesterday. What comes next?

Read more »

A hipster-looking man with bushy beard and multiple arm tattoos sits on the floor against a sofa reading a tablet with his hand on his chin as though he is deep in thought.
Share Market News

ASX 200 slides on unexpected RBA interest rate call

The ASX 200 is tumbling on the RBA’s latest interest rate announcement.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Economy

Tariff deals in focus: What's the likely outcome for Australia?

Brace for a new 'Liberation Day' on 1 August.

Read more »

Percentage sign on a blue graph representing interest rates.
Share Market News

Will ASX 200 investors get a supersized RBA interest rate cut tomorrow?

The ASX 200 could make some big moves tomorrow on any unexpected RBA interest rate announcement.

Read more »

A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.
Economy

Major bank slashes interest rates 6 days ahead of RBA decision

What does this mean for investors?

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Economy

How could Trump's 'Big Beautiful Bill' affect the stock market?

Markets don't seem worried about this bill, but that could change.

Read more »

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.
Economy

Westpac becomes the latest big 4 bank to predict a July rate cut

What does this mean for investors?

Read more »

Oil rig worker standing with a clipboard.
Economy

What does the changing oil price mean for the ASX 200?

Oil continues to wobble with the tensions seen on the world stage.

Read more »