The proportion of home owners declined in 87 per cent of Greater Sydney neighbourhoods between 2011 and 2016, analysis of census data by the Grattan Institute think-tank shows.
The slump in home ownership rates coincides with soaring property prices and rising population density in many Sydney districts. The median price for a detached house in Sydney reached $1.18 million last quarter after surging more than 80 per cent in the past five years, Domain Group figures show.
The biggest decline was in Arncliffe-Bardwell Park, where the rate of home ownership shrank by 12.7 per cent, followed by Homebush Bay-Silverwater (-9.6 per cent) and Castle Hill-East (-9.1 per cent).
One-sixth of Sydney's "level 2" statistical areas (which generally combine two or three adjacent suburbs) saw home ownership rates decline by 5 percentage points or more between 2011 and 2016.
"Whether or not you can purchase a home within 20 kilometres of our big city centres will increasingly depend on the wealth of your parents rather than on anything you can do for yourself," he said. "The reason for that is that is that house prices have risen so quickly."
The Grattan Insititute's research shows the decline in home ownership has been most pronounced among those aged between 25 and 54 years.
The overall rate of home ownership in the Sydney metropolitan area (including those who own outright or with a mortgage) fell from 65.2 per cent to 62.3 per cent between 2011 and 2016. Sydney's rate is now more than 3 percentage points lower than the national average.
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