This article is from the Australian Property Journal archive
DESPITE record low interest rates, the proportion of home ownership fell further in 2017-18 with Victoria recording its lowest level on record, according to the Australian Bureau of Statistics.
The latest ABS research shows the level of households that owned their own home fell to 66%, down from 70% in 1997-98. In addition, households that owned their home without a mortgage decreased to 30% (down from 40%), while the proportion who owned their home with a mortgage increased to 37% (up from 31%).
In contrast, the proportion of households renting has increased to 32% in 2017–18 from 27% in 1997–98.
Over the same 20-year period, the proportion of households that rented their home from a private landlord increased to 27% (up from 20%), while the proportion of public housing tenants decreased from 6% to 3%.
One in five households (20%) owned one or more residential properties other than their usual residence. Of those households that owned other residential property, 71% owned a single property, while 5% owned four or more properties.
The data shows that renters continued to devote more of their income to housing than home owners. On average, private renters paid 20% of their income on housing costs, compared to 16% for owners with a mortgage and 3% for households who owned their home outright.
ABS chief economist Bruce Hockman said housing costs remained steady for most household tenure types when compared to recent years. On average, in 2017-18, renters paid $366 per week on housing, while housing costs for owners with a mortgage were $484 per week.
“Interest rates have remained relatively low over the past several years and we have seen a recent softening in the rental market in some major cities,” Hockman said.
Meanwhile Victoria has recorded its lowest proportion of ownership on record, since the data series began, falling to 68.3% from 74% in 1995-96.
The level in NSW was 64% own a home, down from 67% in 2015–16 and 66.5% in 1995-96.
In Queensland, 63% owned their own home; in South Australia (69%); in ACT (64%) and in Western Australia (70%).
Tasmania boasted the highest level of ownership with 72% whilst the Northern Territory had the lowest at 59%.
