This report examines the impact of the decade 2012 to 2022, during which real wages barely grew, exploring how this has affected young Australians setting out on their careers, trying to build the financial security needed to buy a home and start a family, and grasp the now elusive great Australian dream of home ownership.

Key findings

• Workers’ purchasing power barely shifted in the ten years from 2012 to 2022, increasing by just 2.6% in total over that decade - adjusted for inflation, real wages increased just 0.2% per annum.
• In contrast, the purchasing power of workers increased by over 16% each decade in the 20 years prior (1991-2011) and real wages by 1.4% per annum.
• The income lost by an average worker between 2012 and 2022 amounts to $54,000 in current dollar terms –  for a young couple the combined loss is roughly the equivalent to a 20% deposit on a $500,000 first home.
• $600b in wages were lost to profit over the decade.
• Nominal wage growth has since recovered and dwelling prices have moderated, reducing pressure on housing affordability.