Leslie Massey
Home ownership in Australia is considered a key cultural icon, tied to the Australian national identity and the Great Australian Dream. However, the rate of home ownership in Australia has been declining over the years, with more people renting or taking on larger mortgages. In about 25 years, Australia's rate of home ownership has decreased from 71.4% to between 61.4% and 66.2%, with the proportion of outright ownership without a mortgage dropping from 42% to 31%. This decline is attributed to factors such as property price growth outpacing wage increases, high immigration, and government policies that fuel demand for housing. While the rate of home ownership varies across different states and territories, it is important to note that home ownership among First Nations people has consistently been around 20 percentage points lower than that of non-Indigenous Australians.
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What You'll Learn
Home ownership rates by age group
Home ownership in Australia is considered a key cultural icon and part of the Australian tradition, known as the "Great Australian Dream" of owning a detached house. While the home ownership rate remained around 67–70% from the early 1970s, there have been marked variations in the rates among different age groups.
The 2021 Census data shows a home ownership rate of 67%, down from 70% in 2006. The home ownership rate of 30–34-year-olds was 64% in 1971, decreasing by 14 percentage points to 50% in 2021. For Australians aged 25–29, the decrease was similar, from 50% in 1971 to 36% in 2021.
The home ownership rate for Aboriginal and Torres Strait Islander (First Nations) people in 2021 was 42%, the highest ever reported, with rates steadily increasing from 25% in 1981. The rate of home ownership for First Nations people has increased for each successive birth cohort, but remains around 20 percentage points lower than non-Indigenous Australians across all birth cohorts and age groups.
The home ownership rate for the 50–54 age group has decreased by 8 percentage points over 25 years (80% to 72%). The home ownership rate of Australians born between 1947 and 1951 increased from 54% in 1976 (aged 25–29) to 82% in 2021 (aged 70–74). In contrast, the 1992–1996 birth cohort had a home ownership rate of 36% in 2021 (aged 25–29), 18 percentage points lower than the 1947–1951 cohort at the same age.
There has been a pronounced decline in home ownership among younger households, particularly in the 25–34 and 35–44 age groups. This may be due to several factors, including the increase in housing prices relative to incomes, the propensity of new arrivals to cluster in capital cities, and the general tendency for home ownership to increase with age.
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Home ownership rates by state
Home ownership in Australia is considered a key cultural icon and part of the Australian tradition known as the "Great Australian Dream" of owning a detached house. While the home ownership rate has been stable at around 70% since the 1960s, there has been a general decline in recent years, with the rate decreasing to 65% as of the 2016 Census. This decline is particularly notable among younger age groups, with the home ownership rate for 30-34-year-olds decreasing from 64% in 1971 to 50% in 2021. Similarly, the rate for 25-29-year-olds decreased from 50% in 1971 to 36% in 2021.
When examining home ownership rates by state, New South Wales has both low affordability and low home ownership relative to other states. In contrast, Queensland has the lowest home ownership rate but surprisingly, also the highest affordability, equal with South Australia. Victoria has a higher home ownership rate than other states, despite having lower affordability.
Drilling down to the city level, home ownership rates display varying patterns within major Australian cities. In most cities, home ownership is lowest in the city centre and surrounding areas, while it is highest on the urban fringes. However, Brisbane is an exception to this trend. This pattern may reflect the preference of renters, especially younger people, for rental housing located close to job opportunities and amenities in inner-city areas.
Additionally, it is worth noting that the home ownership rate for Indigenous Australians has historically been lower than that of non-Indigenous Australians. However, the rate for Indigenous Australians born between 1947 and 1951 increased from 26% in 1976 to 61% in 2021. For the same age group in 2021 (born between 1987 and 1991), the home ownership rate was 34%, showing an increasing trend for successive birth cohorts.
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Home ownership rates for First Nations people
Home ownership is considered a key cultural icon in Australia, with two-thirds of households owning their own homes with or without a mortgage. However, this rate varies significantly for First Nations people, who have traditionally faced barriers to owning property due to historical injustices and the ongoing impacts of colonisation.
The homeownership rate for First Nations people in Australia has been steadily increasing over the years. In 2021, the overall homeownership rate for First Nations people reached 42%, the highest ever recorded. This marks a substantial increase from 1981, when the rate was just 25%. While this improvement is noteworthy, it is important to recognise that First Nations people's homeownership rates remain consistently lower than those of non-Indigenous Australians across all birth cohorts and age groups.
In 2021, of the First Nations households, 28% owned their homes with a mortgage, and 14% owned their homes outright. This represents an encouraging rise in homeownership among First Nations communities, with rates of 37% in 2011 and 33% in 2001. However, it is worth noting that a significant proportion of First Nations households still rely on rental options, with 35% renting privately and 18% residing in social housing.
To address the disparities in homeownership rates, the Australian government has implemented various initiatives. The Indigenous Home Ownership Program aims to facilitate homeownership for First Nations people by providing access to affordable home loan finance, knowledge, skills, and networks. Additionally, financial support programs such as the First Home Owner Grant scheme, First Home Super Saver Scheme, and Home Guarantee Scheme assist First Nations people in purchasing their first homes.
Despite these efforts, First Nations people continue to face challenges in accessing affordable, secure, and quality housing. Overcrowding has been a persistent issue, particularly in remote areas, with First Nations people more likely to live in overcrowded conditions than non-Indigenous Australians. Addressing these housing disparities is crucial for promoting the health and wellbeing of First Nations communities, as stable housing contributes significantly to overall well-being.
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Average weekly housing costs
Australia has witnessed a decline in home ownership rates over the years, dropping from 71.4% to 66.2% in about 25 years. This decrease is particularly evident among younger adults, with ownership rates falling to 36% for those aged 25-29 and 50% for 30-34-year-olds.
The average weekly housing costs vary depending on factors such as location and ownership status. In 2019-20, the average weekly housing costs for homeowners with a mortgage were $493, while those without a mortgage paid significantly less at around $54 per week. Renters, on the other hand, experienced varying costs depending on their landlords. Those renting from private landlords had an average weekly cost of $415, while those renting from a housing authority paid approximately $150 per week.
The housing affordability ratio highlights the financial burden of housing, with homeowners with mortgages spending 15.5% of their gross household income on housing, while renters allocate a higher proportion of 20.2%. Lower-income households face even greater challenges, with renters from private landlords spending 21% of their gross weekly income on housing, and lower-income homeowners with mortgages spending 27%.
The road to first-time home ownership has become increasingly challenging due to rising property values, high property prices, and housing affordability issues. In 2024, the median rent across Australian capital cities reached $650 per week for both houses and units, accounting for a significant proportion of the average Australian weekly salary.
To address these challenges, the Australian government provides various financial support programs to assist first-time home buyers, low-income households, First Nations people, and vulnerable individuals in purchasing a home. These initiatives aim to improve access to home ownership and help maintain ownership stability.
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Additional support for first-time buyers
As of 2021, around two-thirds (66%) of Australian households owned their own homes, with or without a mortgage. This percentage has decreased over time, with the homeownership rate for those born between 1992 and 1996 being 36% in 2021, when they were aged 25-29.
The Australian government provides various forms of support for first-time home buyers to address the challenges posed by the country's expensive housing market. Here are some additional support measures for first-time buyers:
Home Purchase Assistance
This program offers financial assistance to eligible low-income households to help them become homeowners. It provides direct lending, concessional loans, and mortgage relief to make homeownership more accessible and sustainable.
First Home Owner Grant Scheme
Introduced in 2000, this scheme offers a one-off grant to low-income first-time homeowners who meet the eligibility criteria. To be eligible, at least one applicant must be an Australian citizen or permanent resident, and they must satisfy residency requirements by moving into the property within 12 months of settlement and living there for at least 12 continuous months.
First Home Super Saver Scheme
Implemented in 2017, this scheme assists first-time buyers in saving for a house deposit using their superannuation fund. Buyers can voluntarily contribute up to $15,000 annually, up to a total of $50,000, and benefit from tax savings through their superannuation contribution arrangements.
Home Guarantee Scheme (HGS)
The HGS helps first-time buyers secure a home loan with a smaller deposit. It includes the First Home Guarantee, the Family Home Guarantee, and the Regional First Home Buyer Guarantee. Under this scheme, buyers may only need a 2% or 5% deposit, reducing their upfront costs.
First Home Buyers Assistance Scheme (FHBAS)
This scheme offers a full or partial exemption on transfer duty for first-time buyers in New South Wales (NSW). To be eligible, the property value must be below certain thresholds, and buyers must meet residency requirements. The NSW Government also provides an online tool, the Home Buyer Assistance Finder, to help individuals determine their eligibility for this and other programs.
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Frequently asked questions
The percentage of people who own their homes in Australia is between 61.4% and 66%, as of 2024.
Yes, the percentage of people who own their homes in Australia has changed over time. In about 25 years, Australia's rate of homeownership has gone from 71.4% to 66.2%.
The percentage of homeowners varies across different Australian states. In 2017-18, Tasmania had the highest rate of homeownership at 72%, followed by Western Australia at 69.3%. The Northern Territory had the lowest rate at 59%.
As of 2021, there were more than 10.8 million private dwellings in Australia, with an average of 2.6 occupants per household.
Home ownership varies across different age groups in Australia. Older Australians, such as baby boomers, are more likely to own their homes, with three-quarters of them being homeowners. In contrast, only about 24.3% of Gen Z Australians own their homes.
