Booming house prices driving massive increase in size of inheritances to $120bn a year

Housing wealth represents about half the wealth of people aged 30 to 59, but 54% for those aged 60 to 99 in 2018, set to increase to 66% by 2048.

Inheritance of real estate is tipped to reach about $100bn in 2019 dollars in the year 2035, assuming house prices rise in line with inflation.

The report found that asset price growth itself, particularly for housing, has a much greater impact on wealth inequality than inheritances.

Australia has experienced a boom in house prices, with double-digit annual growth in many cities in the past two years, only expected to contract in 2023 with rising interest rates.