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The rise of Gen X: The generation dominating real estate
Gen X has won the generational real estate battle, claiming the top spot in terms of property portfolio values and capital growth, according to real estate veteran John McGrath.
Data collated in the 2026 McGrath Report found that Gen Xers, born between 1965 and 1979, have had a significant advantage over other generations when it comes to capitalising on the property market.
McGrath CEO John McGrath said that Gen X has emerged as the clear overall capital gains winner when comparing the generations' property portfolios.
With sellers continuing to see substantial capital gains in the back half of the year, McGrath said that he expects Gen X, with their larger portfolios, to see the highest returns.
KPMG data found that Gen Xers own housing valued at $1.31 million, surpassing the average Baby Boomer’s $1.3 million portfolio.
“Most sellers will enjoy property growth to some degree. But I believe that Generation X will benefit the most from this,” McGrath said.
When Gen X buyers first entered the property market, McGrath said they were well-placed to capitalise on key policy changes and economic factors in their pursuit of financial freedom and independence.
“Gen Xers not only missed Australia’s highest cash rate on record in January 1990 but benefited from falling interest rates during the mid-1990s, and prices turned in their favour again from the early 2000s,” McGrath said.
Cotality data found that a Gen X buyer who purchased a property in 1997 for a median price of $126,728, or around six times the average annual income, would have collected $528,182 in capital gains by mid-2025.
In comparison, a Millennial looking to buy a home in the late 2000s would have had to spend 10 times their annual income to secure a property, and would have missed out on over $100k in capital gains compared to Gen X by 2025.
In addition to being in a stronger financial position thanks to their portfolio, Gen X will also be the first generation to enter retirement with the benefit of the shift to a mandatory superannuation scheme, which was introduced in 1992.
What comes next
With under a quarter of Gen Xers aged 55-64 forecasted to be outright homeowners by 2031, McGrath said he anticipates that there could soon be an increase in homeowners looking to downsize.
“While Gen X members have an immediate need for family accommodation and work-from-home facilities, the medium to longer-term property game looks very different,” McGrath said.
Demographics Group co-founder Simon Kuestenmacher said that Gen Xers are now uniquely positioned to leverage their portfolios to achieve financial freedom while also enjoying lifestyle benefits.
“While Gen X needs a big house for the next ten years for the kids and the grandparents, after this, they can become empty nesters, sell the house down and pocket the profit,” Kuestenmacher said.
“With Boomers, there is a view that whoever dies with the most toys wins the game of life, but Gen X will be more likely to downsize, both for financial reasons but also because they can move into a more walkable neighbourhood and have better mental and physical health.”
McGrath said that for those still paying off a mortgage, downsizing can be the solution to eliminating debt and encouraged Gen Xers to consider looking beyond the nation’s capital cities when making a lifestyle change.
“Some Gen Xers will find their personal and financial sanctuary in regional areas that can offer affordable housing and a great lifestyle,” McGrath concluded.