Home ownership rate could fall below 50%

Adam Smith 20 July 2016

house xy axis graphThe high cost of real estate could see more than half of Australians priced out of the housing market within the coming years.

The Melbourne Institute’s Household Income and Labour Dynamics in Australia (HILDA) Report has found home ownership rates in Australia are deteriorating as house prices rise. The report found younger Australians were the group most impacted by the fall in home ownership.

“The decline in home ownership between 2001 and 2014 would suggest there is likely to have been change in the age composition of home owners. In particular, one might expect that rates of home ownership have fallen more rapidly for younger age groups,” the report said.

According to the report, home ownership among the 25-34 age group fell from 38.7% in 2002 to 29.2% in 2014, with much of the decline occurring from 2010 to 2014.

Home ownership among persons aged 25–34 declined from 38.7% in 2002 to 29.2% in 2014, with much of the decline occurring between 2010 and 2014.

While other age groups did see falls in home ownership rates, they were not as pronounced as the decline for 25- 34-year-olds, the report said.

Which generation has it worst for housing affordability?

“Among persons aged 35–44, home ownership declined from 63.2% to 52.4%, and among persons aged 45–54, it declined from 75.6% to 67.4%. There was also a slight decline in home ownership among persons aged 55–64, from 75.1% in 2002 to 72.9% in 2014. There was essentially no change in home ownership among those aged 65 and over.”

The report’s author, Professor Roger Wilkins, said the trend was likely to see Australia’s home ownership rate fall below 50%.

“Between 2001 and 2014, owner occupied houses have declined by 3.5 percentage points. That translates to 700,000 Australian homes,” said Professor Wilkins. “It is likely that in the next few years less than half of adults will be home-owners,” Wilkins said.

More great ideas from finder.com.au

Get a life insurance quote
Get a life insurance quote

Find out what it costs to protect yourself and your family

More info...
Refinancing home loans
Refinancing home loans

Choose from offers with rates as low as 3.39% p.a.

More info...
Google Pixel
Google Pixel

Compare plans for Google's flagship Android phone

More info...
Christmas ideas
Christmas ideas

Visit our Christmas homepage for gift ideas, markets, travel & deals

More info...

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback