Issue Paper wealth widens wealth inequality and raises the entry barrier to asset markets

Summary

MGI warns that when household wealth grows only because asset prices rise, the gains are fragile and households face a greater chance of eventual corrections. Rising valuations also tend to deepen wealth inequality. People who already own property, shares, or other assets capture large gains, while those outside the market find it harder to buy in. The report points to young households trying to buy a home as a typical example of this barrier. It links the concern to its broader finding that wealth in 2025 rested more than before on asset prices outrunning real investment and growth.