The most startling revelation to come from the latest HILDA report is that fewer than half of Australian adults will own their own home by next year.
A new report on Household, Income and Labour Dynamics in Australia reveals that rising property prices and flat wages growth are preventing young people from entering the property market.
The report predicts that fewer than half of Australian adults will own their own home by next year.
The HILDA report shows that just over half, or 51.7%, of Australians aged 18 and over currently own a home, down sharply from the 57% recorded in 2002.
"It is likely that in the next few years less than half of adults will be home owners," says the report.
There is a clear generational divide in home ownership, with the decline in home ownership concentrated on those aged under 55.
Home ownership among those aged 25–34 declined from 38.7% in 2002 to 29.2% in 2014, with much of the decline occurring between 2010 and 2014, says the report.
Among those aged 35–44, home ownership declined from 63.2% to 52.4%. Among people 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, according to the report.
“Sliding home ownership is a damning report card on the collective failure of governments to act,” said Glenn Byres, the Property Council of Australia’s Chief of Policy and Housing.
“Housing affordability has remained a public policy orphan for too long and there is a compelling case for change given the acute problem in our capital cities,” he said.
“Neither side of politics took a comprehensive plan to the last election. Instead we saw a tax debate on negative gearing masquerading as a housing affordability debate.”
Other highlights of the research include:
- more than two-thirds of Australians have relied on welfare at some stage over the last decade
- couples over 65 have experienced a real increase in median net wealth of almost 70% since 2002, and are considered the wealthiest Australians
- the average annual disposable income per household (at December 2014) has risen from $58,000 in 2001 to $76,000 in 2014, an increase of just over 25%
- small businesses are employing fewer people, but are more likely to employ men, older people, and trade workers in lower wage, part time and casual roles
The HILDA Survey has been running since 2001. Researchers interview the same 17,000 Australians each year, to create a snapshot of the nation. The report spans every topic of household life, including income, savings, employment, family life, and health.
HILDA report selected findings
Read more:
Younger generations doing it tougher
Australians want action on housing affordability
Changes to negative gearing not the answer to housing affordability