Stats: Narrowing the gap

The comfort gap between property owners and renters is closing

With most households feeling better about their finances despite the falling property and share markets, the comfort gap between homeowners and renters has narrowed for the first time in seven years, according to ME’s bi-annual Household Financial Comfort Report.

Surveying 1,500 households across Australia in December 2018, the report revealed that income gains, easing living costs, increased savings and reduced overspending were primary drivers of rising financial comfort, but belt-tightening could be slowing economic growth.

“We’ve seen a correction for wealthier, older property-owning Australians who’ve been riding the hot property and bull share markets for much of the past seven years, while middle and lower-income households have begun to benefit from an easing in living cost pressures and income gains,” ME consulting economist Jeff Oughton said.

“Together the changes have helped to narrow the big gap in financial comfort that had been widening.”