Low rates, government grants and the rise of single women homeowners driving ownership lift, REIA says
The Real Estate Institute of Australia is forecasting a rise in homeownership driven by government grants, historically low interest rates and the rise of single women owning homes in this year's census.
REIA President Adrian Kelly said that homeownership was at its highest level (73%) in 1966 and its lowest level (53%) in 1947. Homeownership sat at 67% in the last census in 2016.
“Homeownership as recorded by the census has been sustained at the 70% mark over the years and this has not yet been exceeded, so it will be interesting to see where the latest stands,” Kelly said. “According to research by Australian Housing and Urban Research Institute, mortgage interest rates sat at 6% in the early 1970s, peaked in 1990 at 18%, and hit historical lows of 5% and under from 2017 onwards. The latest census will be the lowest interest-rate environment in history.”
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Kelly said the rise of dual-income households and the increasing economic power of women have also been key drivers of homeownership.
“From 1981 onwards, dual-income homeownership has risen consistently, from 50% in 1981 to over 85% in 2016, with single-income homeownership on the decline from 50% in 1981 to under 15% in the 2016 census,” he said. “Dual income homes and the economic contribution of women has been a major factor in property markets rising over recent years.”
