Home Ownership Heading Down
Young Australians appear to be foregoing the dream of home ownership in a mass cultural and economic trend.
The Housing Supply Council of the Federal Government said that Australia is facing a significant reduction in home ownership. Young Australians are choosing to rent instead of buy in order to match their lifestyle or because they are unable to afford a home.
Interestingly, it is not just low income families that are renting. The Housing Council report showed that some households with a high income are electing to rent to enable particular lifestyles.
Dr Donald Owen, Chair of the National Housing Supply Council, said that this trend is the opposite of Australia’s history of home ownership over the last 50 years. Australia’s house ownership rates increased continuously after World War II until the 1970’s but now Australia was seeing a clear drop in home ownership. The report of the Housing Council found that an enduring housing shortage and a lack of housing affordability were causing many Australians to lower their housing aspirations.
Dr Owen predicted increased apartment living and occupancy of smaller homes. “The future is apartments and medium to high density,” he said.