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ustralians living in certain suburbs are accumulating significant savings, with some households having over $200,000 in disposable income. However, this is not necessarily due to higher incomes but rather because they purchased their homes at a time when housing costs were more affordable.

    Experts say that those who bought homes in previous decades had more of their income left over to save or invest, whereas recent homebuyers and renters are struggling with high housing costs that leave them little room for savings. The data reveals a growing cash divide across the country, with some households having much less free cash than others.

    According to Betashares CEO Alex Vynokur, the households with the most freed up cash were not always the wealthiest earners. "Often people who earn a lot, spend a lot," he said. Analyst Martin North added that housing costs are exacerbating wealth inequalities, with some households doing extremely well due to lower housing expenses and being at a stage of life where they can save more.

    The research showed varying amounts of savings across states and cities, with suburbs in Queensland's Dayboro having an average of $217,146 available for spending or investing. In New South Wales, Sydney suburbs like Balmain and Rushcutters Bay had high average savings, while areas with less free cash tended to be those with new housing developments.

    In Victoria, Melbourne's pricier areas had lower savings due to higher expenses, while in South Australia, Adelaide households were found to have significant disposable income. The data suggests that many people are holding onto large sums of money in the bank rather than investing it, possibly for a future purchase or relying on the "bank of mum and dad".