The McCrindle Blog
Compared to 30 years ago, there’s now twice as many Australians renting, and for many Generation Y's now in their 20’s and 30’s, buying their own home will now seem almost unattainable.
Mark McCrindle joins Today Tonight on the topic of Generation Rent – outlining how difficult it is today for young people to break into the property market.
Today it is twice as hard for young people to buy their first property compared to when their parents were starting out, because they’re not just competing with other first home buyers but also with investors, self-managed super funds, trusts and overseas buyers.
Four decades ago, an average home in a capital city was 5 times the average annual earnings, and today it’s 10 times average annual earnings.
It’s not all bad news – in many areas, particularly in the inner city suburbs, it is much cheaper for young people to rent than buy, and as long as they’re investing and not spending everything on lifestyle pursuits, young people will get ahead even without home ownership.
It's hard to stay relevant in today’s current environment. How can we interact with our communities and fellow Australians? How are things changing across Australia – demographically, socially, and generationally?
Mark McCrindle joins Hope 103.2's Hope Breakfast with Aaron and Erin to discuss the latest trends and changes facing Australian communities.
How is Australia changing and what have we missed when we talk about Australian communities?
We're certainly growing and changing as a society – if someone hadn't really looked at the demographics of Australia for 10 years, suddenly were a few million people more, new generations have emerged we're more culturally diverse as a nation than ever. It is important for everyone to observe these changes and remain relevant.
Are there things we are oblivious to when it comes to understanding our communities?
Well, oftentimes we miss that we are so much more mobile as a community in terms of how often we move home. We look at our parents who may have stayed in their family home their whole lives, but now we've got a third of the population renting, and the average renter in Australia stays just 1.8 years per home. Even those who are paying down a mortgage with family and kids are only staying for 8 years. We are moving across our communities more frequently which means we don't so much know our neighbours – in a sense we are losing that connection with our local neighbourhood but still have a strong need for local connection.
We have seen interesting shifts in some of our suburbs, particularly noticing that areas have become more multicultural in just 5 years. Can things shift that quickly?
Yes it has happened quickly and there is also a significant change in terms of housing structures. Now 1 in 4 homes are medium to high density housing, and more of those homes have been units or townhouses as opposed to detached homes. So much so that the population centre (where there are as many people east, west, south, and north in a city) identified in Sydney is now is now Ermington, just slightly east of Parramatta. Interestingly it hasn't moved from the last 6 years whereas before it was moving further west. Nowadays, for each home being built on the outside skirts of the city, we've got high density housing and units being built closer to the city.
How are we going generationally? What are some of the shifts that are taking place?
The workplace is certainly an area where we're seeing some significant change – Gen Ys are entering the workplace in big numbers and have a different attitude to work – they don't stay as long as used to be the case, with older generations now saying, "Where is their commitment?"
But at the same time we find that the generational space is in good health because we are connecting across those generations a bit more in our households, families, or shopping centres – we're bumping into a wider age range than used to be the case. People are older and ageing in Australia while we’ve also got record births. We're across the generations more in the public space which is a positive thing because each generation brings strength and their own vibrancy. It's important that we have these intergenerational spaces to connect in our society today.
Let’s talk a bit more about the Australian Communities Forum that you are hosting on 1 November 2013. You’ve mentioned in just a short time that there is clearly a lot we need to be informed about if we want to engage with our communities we need to understand them. Is this what you are aiming to do at the Forum?
Exactly right, this is Australia’s only one day forum focused on communities – held at Customs House, Circular Quay, Sydney with the City of Sydney and some great sponsors on board.
In a day we want to help Australians understand communities from a demographic perspective, the generational change, how to connect with workplace communities, and even how to connect with geographical communities. Learning how to communicate in these changed times is key, as well as learning how to meet the needs of our ever-changing communities.
We are focusing the Forum not just on community groups and charities but business people and those in the commercial world – they need to understand their customers who are communities, empowered, educated and on active on social media– how they can best connect and engage their needs.
For all of Australia’s communities in all their diversity, we want to give a snapshot and give some tools as to how you can understand and connect with community better.
For many young Australians, home is still where the heart is. In fact, 29 percent of 18 to 34 year-olds are still living at home.
Mark McCrindle joins Larry and Kylie on The Morning Show to discuss Australia’s Kidult Phenomenon.
Comparing 1976 with 2011
In 2011, only 42 per cent of young adults were living with a partner - and only half of those couples had children. But if we travel back to 1976, we see a surprising trend: 65 percent of young adults lived with a partner, and 3 in 4 of them had children.
A number of trends contribute to the ‘staying with mum and dad’ phenomenon. In 2011, 26% of adults aged 18-34 were studying, compared to 14% in 1976. But statistics also tell a different story – young adults are not necessarily at home because they are building their careers, with only 69% of 18-34 year olds working 40 hours or more per week in 2011, compared to 84% doing the same in 1976.
Top 5 trends keeping young adults from leaving home
- Studying longer
- Starting families later
- Delaying career & earnings
- Higher housing costs
- More flexibility & lifestyle options
What about the future?
Is it the parents who want their kids to stay home until they’re married, or is it the kids who don’t want to leave?
How does Australia compare to other countries when it comes to this type of living arrangement? Looking into the future, are we likely to see this trend continuing?
View the segment to find out:
For more videos of Mark in the media, visit the McCrindle Research Media Page.
Australians are living longer than ever before and this remarkable growth in longevity is the primary cause of our ageing population.
With Australians living longer, they are also working later and remaining active as grandparents more and later in life than ever before.
Many older Australians are in a life stage significantly younger than their age. 20th Century expectations of age can no longer be applied in the 21st Century, as traditional demographics don’t match new psychographics. From technology uptake to working longer, older Australians are not just “retired and wired” but working, leading and influencing later in life than has ever been seen.
Here’s a demographic snapshot of the downageing situation:
Comparative analysis of Australia’s 60-year-olds
The total population has more than doubled.
Average age of becoming a grandparent
Grandparents are older chronologically but younger psychologically.
Life expectancy at birth
We can expect to live 12 years longer today than in 1953.
Life expectancy at 65
65’s of today are like 58’s of a generation ago in terms of longevity.
Source: McCrindle Research, ABS
Australia’s new grandparents: Younger than their parents were at the same age
Australia’s new grandparents, aged 60 are the Baby Boomers. Since the Boomers (born 1946-1964), we’ve seen Generation X (born 1965-1979), Gen Y (born 1980-1994) and this year Generation Z (born since 1995) enter adulthood and the Boomers are now grandparenting Generation Alpha.
But they are a generation of “downagers” – younger than their parents were at the same age, younger than their age would suggest, and based on the life expectancy rates, a 65 year old grandparent is more like a 58 year old of a generation ago.
Statistical summary of today’s downageing population
- Demographic mid-life for an Australian has been pushed back to 50 years for a male, and 52 for a female in terms of adult years lived (since turning 18) and adult years to go (32 years lived since turning 18 and 32 years life expectancy for a male aged 50, and 34 adult years lived and 34 to go on average for a female).
- The median age of employed persons in industries such as Education and Health is now 45 years – so while there are many workers in their 20’s, there are many in their 60’s, resulting in a median age of 45.
- Today's grandparents are a working generation: 1 in 4 males aged 68 are employed full time, and 1 in 10 females aged 68 are employed full time.
Remember that many of today’s 60-something leaders have been in leadership since their 20’s and 30’s – they were needed during the boom years of the 50’s and 60’s. They also see no need to stop leading – having gained experience through decades and a lot of life left, they continue leading many of Australia’s businesses and industries.
For further research and an occupation breakdown of workers 65+, see our entry Older Workers, Downagers, and Redefining Retirement.
Nuclear family no longer most common household
For the first time in Australia's history, the nuclear family will no longer be the most common household – while today they make up 33% of all households, within just a year the couple only household will be the most common type of household.
With the decline of the nuclear household structure, we are often seeing three generations living under one roof: Baby boomers are being sandwiched by taking care of their own parents (the builders), while still having their Gen Y children living with them and studying.
This type of arrangement is a significant financial advantage for Gen Y KIPPERS (Kids In Parents’ Pockets Eroding Retirement Savings) who may be saving $15,000 per year on rent alone by living with their parents. For mum and dad, however, retirement plans are delayed and retirement savings significantly decrease. Baby Boomer parents, while enjoying the social interactions available in a multigenerational household, can often feel the pressure and may feel like their hard work is being taken for granted.
Household situations can also get financially tight when couples split – in Australia, the average age of a couple separating is 38, with an average of 2 children involved in the separation. Oftentimes in this situation couples stay together because it is simply not financially viable to move out.
Record births, older parents, increase in family size
Australian families are changing dramatically, with record birth rates taking place – over 300,000 babies are being born every year, more than were born in the original baby boom post WWII. It is not that more women are deciding to have children, but those that are having children are deciding to have more than previously, and as a result Australia is seeing an increase in the family size.
Household size grows after a century of shrinkage
Household size has been declining for the last 100 years. In 1911, the average household size for Australia was 4.5. By 2006, it had fallen to 2.53. But in 2011, something remarkable happened. Household size increased. Only by a small amount, but enough to raise it to the current 2.6 people per household. The multi-gen household and boomerang kids have turned around a 100-year trend and created expanding household size.
Today's children and teenagers: a snapshot of Generation Z
They are the true Millennial generation: the 4 million Australians born since the year 2000. On average they will live longer, stay in education later, and work across more careers than any prior generation. They are the most materially supplied, technologically saturated, globally connected and formally educated generation ever. They are living through their formative years in a time of massive demographic transformation: our population growing by more people in a decade than ever, more culturally diverse than ever, and older than ever.
In the nearly 14 years of their lifespan they have seen more change than any cohort before them. They began life when Australia’s birth rate was declining and soon hit its lowest ebb in history, yet are now part of record annual births- exceeding 300,000 per year. They began their life in the internet era but are being shaped in the world of social media. While the PC era dominated their birth years, the mobile device era is transformative today. With the oldest entering their teen years, their lexicons are filled with terms that didn’t exist at their birth: apps, tweets, tablets, status updates and cloud computing.
Only occasionally does massive demographic change collide with huge technological growth, and significant social change- yet this is exactly what Generation Z has experienced. The confluence of these trends has so transformed their society, it is radically different to the times that shaped their parents and unrecognizable to the world their grandparents first knew.
From the Baby Boomers and Generation X and Generation Y, it is now Generation Z and Generation Alpha that are emerging.
These new generations are global, social, visual and technological. They are the most connected, educated and sophisticated generations ever. They are the up-agers, with influence beyond their years. They are the tweens, the teens, the youth and young adults of our global society. They are the early adopters, the brand influencers, the social media drivers, the pop-culture leaders. They comprise nearly 2 billion people globally, and they don’t just represent the future, they’re creating it. To understand the trends, to respond to the changes, and to be positioned to thrive in these changing times, it is essential to understand these next gens.
Who are Today’s Gen Zs?
Gen Zs are demographically changed – growing up in an era of Australia’s largest baby boom since the birth of the Boomer generation, and are living in an era of changing household structures. They are generationally changed – shaped in a society with an increasingly ageing population. They are digitally transformed – seamlessly integrating technology into their everyday realities. They are globally focused through the emergence of global pop culture, global brands, and a borderless virtual reality. They are educationally transformed – moving past structural and linear learning – and they are socially defined, connected to and shaped by their peers.
Gen Zs at Work: How to attract, retaining, managing & training emerging generations
While Generation Z are still largely in the education system and only just beginning to emerge into the workforce, within a decade they will comprise almost 1 in 5 workers. The oldest cohort of Gen Zs are now 19 years old, many of whom are entering the workforce for the very first time. How can employers understand and engage with the needs of these new employees?
Over the last couple of years the realities of massive generational change have dawned on many business leaders. While the issues of an ageing population and a new attitude to work have literally been emerging for a generation, it has been a sudden awakening for many organisations. In fact dealing with these demographic changes and specifically recruiting, retaining and managing the new generations has emerged as one of the biggest issues facing employers today.
Armed with her research methodologies, business acumen and communication skills, Claire effectively bridges the gap between the emerging generations and the business leaders and educators of today. Claire is a social researcher and a next-gen expert, fluent in the social media, youth culture, and engagement styles of these global generations, and a professional in interpreting what this means for educators, managers and marketers. Visit clairemadden.com for more info.
Australian population has grown by 8% in the last 5 years, with 49 new demographic groups emerging, according to a new demographic segmentation tool released by Experian this week. Mark McCrindle joins Mike and Virginia on ABC Breakfast today to explain 3 of the 49 new segments:
1. Greener Pastures
These are above average income earning families mainly with school aged children who in the past would’ve been in the established suburbs but are moving to the semi-rural areas of our capitals, to sometimes acreage, or more often moving to regional areas, refining regional Australia – they’re going to places like Wagga Wagga, Bendigo, Ballarat, Albury, and Wodonga. They are fairly sophisticated, bringing a good connection to the cities even though they’re now in regional areas.
2. New Bubs New Burbs
These are culturally diverse families that really are the next generation, extending to the outer suburbs of cities like Sydney and Melbourne. Whole new green field suburbs are being developed in the outskirts of major capitals suburbs, catering to the needs of this very aspirational generation of what once were working class families but are now professional class with children moving through university as well.
3. Coastal Contentments
These are a portion of the segment of sea changers that have been around for a while. These are people of retirement age that are moving to coastal areas, but not stopping work – many of them are maintaining work or starting a business, perhaps, with money to spend and not slowing down or downsizing. They remain in larger homes where the children come and visit – lifestyle is really on the top of the list for them.
Infrastructure demands in capitals lead to regional surge
As cities are growing at much faster rates than governments anticipated and not keeping up with the infrastructure needed to keep account of these new groupings, regional Australia is flourishing.
People on the outer suburbs of capitals are saying to themselves, “An hour and a half commute each day and the high cost of housing – maybe we’ll move to a regional center, establish a better lifestyle, and get a bit of breathing space on the mortgage.”
It is certain that the strain on infrastructure, the downside of the bottlenecks that it creates, the extra waiting times and the challenges and costs of getting around are creating fragmentation in terms of where people are living and new lifestyle options.
NSW versus Victoria population growth
Mark also mentions growth trends in Australia’s most popular state, NSW, home to one in three Australians. With the size of the growth and the challenge of keeping property prices attainable, we are seeing growth rates in Melbourne greater than Sydney.
Based on current trends, by the middle of this century Melbourne will exceed Sydney as the most populous city. Melbourne features more embedded transport options and forward planning over the past decade than Sydney, so people are starting to vote with their feet.
Sydney has had a net loss to the other states, while Victoria has had a net gain in population from the other states.
For a more comprehensive look at McCrindle Research in the media, click here to go to our Media page.
It is easy to become disheartened with humanity when our daily catch-up with the world involves few uplifting stories.
In a recent survey drawn from our national online research panel (AustraliaSpeaks.com), 95% agreed that the media reports more negative than positive news and 93% felt that this gives the impression that there is more evil than good in the world.
It comes as no surprise then that only 31% of Australians think there are more acts of kindness performed in the world than acts of terror. However, the reality is that more good goes on in the world than we are led to believe. In fact, off-screen it is good deeds that, by a large margin, outnumber the bad. Our research shows that for every reported act of road rage, violence or abuse, there are 38 acts of kindness towards strangers. Further, we found that 86% of Australians say they have gone out of their way to help a stranger in need, and 29.5% or 6.7 million Australians help a stranger “regularly”.
Here are more statistics to illustrate this: 49% of Australians say they have been shown “significant” kindness by a stranger, while 29% say they have been the recipient of kindness from a stranger over the past week. Further testifying to the power of good over evil is the statistic that 64% of Australians “definitely agree” with the statement that “good is more powerful than evil” (only 6% disagree).
For an inspiring look at the best of humanity - from small acts of charity to selfless acts of kindness, order your copy of our book, The Power of Good.
Click here to download the first chapter.
The McCrindle Research Consumer Trends Wheel is our proprietary device for assessing the impact of 6 key areas on existing or prospective consumers. Demographical, social, generational, financial, technological and attitudinal factors are analysed in this consumer trends scan process. Here is a general example with some of the key impacts transforming today's global consumers. For individualised or targeted consumer trends analysis, do not hesitate to get in contact.
Teleworking and telecommuting are concepts (and terms) that have been around since the early 1970’s, but have become a recent reality for many as technology and work culture are shifting. By 2020, through the completion of the National Broadband Network, the government aims to provide greater opportunities for Australians to work remotely, with the aim for 12 percent of all public servants to regularly telecommute.
A recent McCrindle Research survey of over 580 Australians shows that Australians are eager to make significant changes to their working styles, embracing the freedom to work from home or remote of their primary location of work.
Most would stay longer if offered teleworking
80% of those surveyed stated that they would more likely stay longer with an existing employer should that employer provide them with the flexibility of working remotely or from home. Women expressed this in a greater capacity than men, with 82% of women agreeing this to be true for them, compared to 78% of men. The desire for flexible working arrangements was greatest among full-time workers, 86% of whom expressed the potential for increased longevity in their current role should teleworking be made available to them.
Most would take a pay cut for teleworking
Most employees (52% of men and 51% of women) are prepared to forego a percentage of their pay in exchange for greater flexibility in their working arrangements. While a lesser percentage of Baby Boomers showed such a capacity to forego pay, still almost half (46%) of them would be prepared to put a price on flexibility.
28% of Australians would be willing to earn 5% less for significant flexibility, and 14% of Australians would be willing to earn around 10% less to telework. 1 in 16 Australians would even be willing to compromise 20% of their pay – an entire day’s pay on a full-time load – in exchange for the opportunity to work remotely or from home.
Most are more productive working from home
55% of Australians reported being slightly or significantly more productive working from home than in an office environment. Productivity from home increases with age: While only 45% of Gen Ys report being more productive from home, this number rises to 52% for Gen Xs and 61% for the Baby Boomers. The Builder generation, those 68 and older, report the greatest personal productivity in a home-working environment, with 73% of them reporting greater personal productivity.
Australians spend most of their time working in one location
46% of Australians currently spend all of their working time in their primary location of work. 31% spend anywhere up to 20% of their time working from a remote location, 13% spend between 20 and 80% working remotely, and 10% of Australians work remotely more than 80% of their working time.
1 in 5 Australians work in 3 or more locations
While employers have shown a greater degree of flexibility for telecommuting than in the past, 54% of Australians still work from one central office location. However, 25% of Australians have a second location from which they conduct at least one hour’s work every week, 12% of Australians have 3 or 4 locations that they are based from, and 10% of Aussie workers work across 5 or more locations every single week.
Most want to do some work from home
When given the choice, 78% Aussies expressed a desire to spend at least a certain amount of their time working from home. Of these, 36% expressed a desire to work mainly in the workplace but partly at home, 24% desired to work half their working time in both places, and 40% expressed that they would like to work mainly at home and partly at home.
81% of those employed on a part-time basis showed a desire to work at home at some capacity, compared to only 70% of those who are employed full-time.
More popular and productive for introverts
The benefit of teleworking for introverts is greater than for extroverts. Introverts are 30% more productive working from home than extroverts. If given the choice, over a third of introverts (34%) would choose to work mainly at home and only partly in the workplace, whereas only 1 in 5 extroverts (22%) would choose the same. Conversely, extroverts are 32% more likely than introverts to want to work mainly in the workplace and only partly at home.
But gathering centrally is still essential
In terms of culture and output, the majority of Australians value the group collective, stating that in order to promote the best team outcomes, times for gathering and brainstorming as well as the capacity to work with varying degrees of flexibility is key. Only 18% of Australians feel that collective productivity is greatest when everyone is working in one place with no teleworking options. Over two thirds of Aussies (68%) stated that the culture and output of a workplace is best when everyone is working in one place with a degree of flexibility for teleworking, or when there is a time for gathering and working together but also a significant time for working remotely. Only 1 in 10 Australians would say that productivity is best when workers largely work independently with occasional gathering, and very few Australians (4%) report seeing no need for workers to gather in order to achieve maximum output or develop cultural cohesion.
About this Study: This research was conducted by McCrindle Research in May 2013 based on a nationwide study of 586 respondents.
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Last 100 Articles
- Tight pockets are moving Aussies away from gift-giving this Christmas
- Top Trends of 2013 [in the media]
- Top 13 Trends of 2013
- McCrindle presents GenerationZ.com.au
- Aussies are Living Better than Ever [in the media]
- Research Visualisation: Using Big Data to Tell Your Story
- Generation Rent [in the media]
- Research Visualisation: Moving from Clichés to Playing with Data
- The Australian Communities Forum 2013 Event Recap
- Australia's Ever-Changing Communities [Interview]
- Placemaking: Creating Engaging Community Spaces [ACF 2013]
- The Australian Communities Forum 2013: Exclusive Speaker Line-Up
- Robot Domination: Are Jobs at Risk of Becoming Automated? [in the media]
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- Research Visualisation: From Ancient Symbolism to Customer Engagement
- Local Communities: The Heart of Australia
- Australia's Kidult Phenomenon
- Research Visualisation: Research You Can See
- How Research Happens
- The Loneliness Epidemic [in the media]
- The Downageing Generation
- Leadership and Generation Y: Managing Generational Change and Bridging Gender Gaps
- Community: The Heart of Australia
- Australia’s Changing Household Landscape
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- 10+ Hours of Digital Media [Interview]
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- Australia's Population Milestone [VIDEO]
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