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Australians’ Life Satisfaction Has Fallen and Young Adults Are Worst Affected

KPMG analysis says soaring housing costs and wages that have not kept pace with inflation explain the decline and have pushed the government to target first‑home buyers

Overview

  • A KPMG-backed study finds overall life satisfaction in Australia is now lower than in the mid-2010s and lower than during the pandemic.
  • The report and ABS data point to sustained financial pressure as the main cause, with wages rising about 17.5% since mid-2021 while inflation rose about 23.3%, eroding real pay.
  • People aged 25 to 34 recorded the lowest score at 6.8 out of 10, down from 7.5 in 2019, a drop KPMG links to high rents and mortgage costs.
  • More than one-in-five households say they could not raise $2,000 within a week and over a quarter have faced at least one cashflow problem in the past year, exposing weak emergency savings.
  • Prime Minister Anthony Albanese has acknowledged the economic stress is reshaping politics and the government has proposed budget and property tax changes aimed at improving chances for first-home buyers.