The middle isn't really that squeezed

TLDR: The Opposition and some commentators are pointing to the ‘squeezed middle’ to back their arguments for middle-to-upper income tax cuts and when warning against Government or Reserve Bank moves that might cause a ‘housing crash’.

Actually, the ‘squeezed middle’ is quite plump and in no danger of some sort of forced rush-to-the-exits that would turn an expected 15% slide in house prices to anything more like a ‘crash’ of 30% to 50%. Middle-income households are in fine fettle, especially if they own their own homes, according to the latest statistics on income, mortgage costs, cash savings and household net worth.

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Not so gloomy: Along with all the grumbling about higher prices and rising interest, some commentators have even worried aloud about the risk of mass mortgagee sales and a house price crash of 30-50%. But how squeezed is the middle, really? Photo: Lynn Grieveson / The Kākā