Homeownership & Household Formation ON THE RISE in Australia but delayed for sociodemographic reason; Household formation delayed until later in life because MARRIAGE is the key determinant
Tweet Topic Started: 23 Aug 2013, 10:58 AM (6,514 Views)
Personally I think it's a good thing that houses are increasingly affordable and that more people can establish new households.
No, the ABS household formation chart actually includes those lone occupants, and personally I think it's good that homes are affordable enough for people to establish households on their own... a lot of bears here seem to think two incomes is mandatory, when that's obviously not the case.
Shadow Links to the data from the charts? Perhaps some more up to date data may be more relevant than your 1999 data?
"Although family households show the greatest numeric increase, lone person households are projected to show the greatest percentage increase over the 25-year projection period. The number of lone person households is projected to increase by between 63% and 91%, or 1.2 to 1.7 million households. This is an increase from 1.9 million households in 2006 to between 3.0 and 3.6 million households in 2031. This is mainly related to the ageing of the population and the fact that older women, in particular, are more likely to live alone than other people." http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/65F280EE22A7ECB5CA25773B0017BC58?opendocument
"Average household size
The average household size in Australia is projected to decline from 2.6 people per household in 2006 to between 2.4 and 2.5 people per household in 2031. In 2016, Australia's household size (2.5) is projected to be the same as Japan and New Zealand (both 2.5), and larger than England (2.2) and Scotland (2.1)."
"Two of the three series project that the number of couple families without children will overtake the number of couple families with children and become the most common family type in Australia, in either 2014 (Series II) or 2013 (Series III). The growth in the number of couple only families is primarily related to the ageing of the population, with baby boomers becoming 'empty nesters' as their children leave home."
"Older people (aged 75 years and over) In 2006 there were 1.3 million people aged 75 years and over in Australia, representing 6% of the total population. Over the period 2006 to 2031, this number is projected to more than double, to 2.9 million people (10% of Australia's population). In 2006, 43% (548,500 people) of older Australians were living with a partner; most of these (39%) were partners in couple only families while 4% were partners in couple families with children. People living alone accounted for a further 31% (400,500) of older Australians while 13% (168,600) lived in non-private dwellings. By 2031, the number of older Australians living with a partner is projected to increase to between 1.2 and 1.5 million people (42% and 52% of all people aged 75 years and over, respectively). The number of people living alone is projected to increase to between 841,800 and 901,800, accounting for between 29% and 31% of older Australians, while the number of people living in non-private dwellings is projected to increase to between 285,400 and 403,400 people, or 10% to 14% of older Australians."
"Australia The most common living arrangement for people in Australia over the period 1991 to 2006 was a couple family with children, with at least half the population being either a partner or a child in this family type. The trend over this period reveals a decline in this type of living arrangement. In 1991, 59% of all Australians lived in a couple family with children (29% were partners and 29% were children). By 2006, this proportion had decreased to 50% (25% partners and 25% children). Conversely, the proportion of people living in one-parent families increased between 1991 and 2006, from 9% to 12%, with the proportion of children increasing from 6% to 7%, female lone-parents increasing from 3% to 4%, and male lone-parents remaining at 1% of Australia's population. Over the past four Censuses, the proportion of people living as partners in couple only families has increased, from 17% in 1991 to 21% in 2006. This trend is primarily due to the ageing of the population and subsequent increase in the number of 'empty nesters'. The proportion of people living alone increased from 7% in 1991 to 10% in 2006, with males increasing from 3% to 4% and females from 4% to 5%. The proportion of people in group households decreased from 4% in 1991 to 3% in 2006, while people living in non-private dwellings accounted for 2% of the population in each Census since 1991."
"The number of Australians living alone is projected to have the most rapid increase of all household types, increasing by up to 91% over the next 25 years to 3.6 million by 2031. The rapid increase of people living alone is mainly related to the ageing of the population."
"Around one-quarter to one-third of all people living alone in 2026 (between 844,000 and 962,000 people) are projected to be older Australians (aged 75 years and over). Three-quarters of these older Australians are expected to be women.
The increase in the number of people living alone is related to the ageing of the population, increases in divorce and separation, and the delaying of marriage.""Housing costs for owners with a mortgage up 42% over past decade
Over the past decade, average housing costs for households with a mortgage increased by $120 per week or 42% (CPI adjusted), according to the Australian Bureau of Statistics (ABS).
Between 1999-2000 and 2009-10, average weekly housing costs for private renters increased by $78 per week or 34% (CPI adjusted) and average weekly housing cost for owners without a mortgage increased by $5 per week or 17% (CPI adjusted). Over the same period, the proportion of households that owned their home without a mortgage fell from 39% to 33%. The proportion of households with a mortgage increased from 32% to 36% and the proportion of private renter households increased from 20% to 24%.
In 2009-10, households with a mortgage had the highest housing costs, averaging $408 per week or 18% of their gross household income. Over the past decade the proportion of gross income that households with a mortgage spend on housing costs has been stable, at about 18%.
Private renters spent an average of $305 per week on rent payments in 2009–10, or 20% of their gross household income. The proportion that private renters spend on housing costs has also remained stable over the past decade, representing about 19% of gross income."
Perhaps some more up to date data may be more relevant than your 1999 data?
The chart I posted is from 2011.
Pauk, aside from highlighting the fact that increasing numbers of people can afford to establish lone households, was there any other point you were trying to make with those last three post?
Pauk, aside from highlighting the fact that increasing numbers of people can afford to establish lone households, was there any other point you were trying to make with those last three post?
The rise in lone occupants is due to ageing, not affordability.
willy_nilly
26 Aug 2013, 12:24 PM
The rise in lone occupants is due to ageing, not affordability.
But as I said... it's good that these old people (as well as the larger category of under-75s) in lone households can afford to establish households on their own.
"The increase in the number of people living alone is related to the ageing of the population, increases in divorce and separation, and the delaying of marriage."
willy_nilly
26 Aug 2013, 12:31 PM
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lol..."lone households can afford to establish households on their own" Yep and there we leave it folks for all to see. Shadow thinks that lone occupants, kids, can afford to buy a house today on a single wage.
willy_nilly
26 Aug 2013, 12:31 PM
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lol..."lone households can afford to establish households on their own" Yep and there we leave it folks for all to see. Shadow thinks that lone occupants, kids, can afford to buy a house today on a single wage.
"The increase in the number of people living alone is related to the ageing of the population, increases in divorce and separation, and the delaying of marriage."
Yes, there are many reasons for the rise in home ownership rates and the fall in persons per dwelling.
Let's be grateful that homes are affordable enough to permit these sociodemographic changes, rather than complain about 'overbuilding'.
The delaying of marriage is an important one, and mentioned by BullHawk in the OP as contributing to a delaying of homeownership until later in life.
The rise in lone occupants is due to ageing, not affordability.
How do you know? Myself, and many other people I knew lived on our own in places (either owned or rented) for long periods during our late 20s and 30s. Many professional people grow out of the share house thing at some stage, and find they have the means one way or another to live on their own for while. Sometimes the spark is the break up of a live-in relationship, or even a divorce for those that married a bit younger - who wants to go back to share houses after a divorce? No thanks, not if I had the choice. This was a far less prevalent trend (at least in Sydney) prior to the past 10/15 years, as people just couldn't generally afford it. Today they can (professionals can anyway). I personally loved that period of my life - so much independance and freedom to do whatever I wanted without any hassles / restrictions due to having to sahre a house with flatmates and so on. I took *full* advantage of this freedom during that stage of my life! It only ended when I asked my now wife to move in with me.
So I reckon a large part of the lone household trend is as Shadows says - due to the fact people can afford to do this now, and in the past they could not. Plus the demographics were different with people tending to marry later nowadays and so forth - it's all related.
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