The role of housing in processes of wealth polarisation and de-polarisation in Australia

Abstract

Previous studies have shown that unequal housing costs contribute to income polarisation, and a contraction of the middle-income group in Australia. In this paper, rather than income, we examine the role of housing in processes of polarisation in the wealth distribution. Analysing longitudinal survey data from 2002 to 2022, we find that when housing wealth is excluded from analysis, a more polarised structure of wealth distribution is evident in Australia. This observation suggests that housing played a de-polarising role in the wealth distribution, in contrast to its polarising role in the income distribution during these years. While these effects varied geographically, with some fluctuati..