Work

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

Year: 2025

Type: article

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 fluctuations over time, the findings reflect a striking resilience of the wealth distribution pattern over 20 years. These findings provide a new perspective and new evidence on the significant role of housing in shaping the wealth distribution in society.

Source: Housing Studies

DOI: 10.1080/02673037.2025.2548820

Authors: Ilan Wiesel, Jordy Meekes, Sangeetha Chandrashekeran

Institutions: The University of Melbourne, ARC Centre of Excellence for Children and Families over the Life Course, Leiden University, IZA - Institute of Labor Economics

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Funders: Australian Government, Department of Social Services, Australian Government, ARC Centre of Excellence for Children and Families over the Life Course