Outright home ownership plumments over the past 15 years - The only winners are the banks!; Proportion of households that are outright home owners has fallen from almost 42% in the mid-1990s to 30.9 % today
Tweet Topic Started: 29 Aug 2013, 10:55 AM (4,901 Views)
The share of Australian families that rent has drawn level with those who own their homes outright, as a growing number of young people appear to be giving up on the dream of buying a house.
The proportion of households that are outright home owners has fallen from almost 42 per cent in the mid-1990s to 30.9 per cent in 2011-12, new Bureau of Statistics figures show. That is the lowest proportion collected by the bureau's survey of housing occupancy and costs, which started in 1995.
The share of renters has risen nearly 5 percentage points to 30.3 per cent in the same period. The proportion of households paying off a mortgage has risen from 30 per cent to 37 per cent.
Sydney University housing expert Judy Yates attributed the decline in total home ownership - from 71 per cent to 67 per cent since the mid 1990s - to the spiralling cost of housing. ''This is all about affordability,'' she said.
But Associate Professor Yates said the decline in the share of outright home owners was also being driven by well-established families using their mortgages to fund other purchases, especially investment properties.
CommSec chief economist Craig James said Generation Y - now aged in their 20s - seemed to have a different outlook on home ownership to previous generations: ''There has been a major change in attitudes concerning home ownership, with renting continuing to be preferred - either because Generation Y is choosing a different lifestyle or because the cost of purchasing a home continues to lift.''
Yes, the ABS has been covered here and argued on both sides. We already know how the bulls and bears will spin this story to meet their own narrative.
In my opinion - its rare that you get a canary in the coalmine more important than the part i have outlined in bold. When a Commonwealth Bank economist admits to the country that prospective FHB's are going to be thin on the ground due to rising prices and lifestyle choices, that says it all (we all know that Commbank relies upon growing mortgage revenue more than any other bank in Australia).
As i have said before, the growing Gen Y situation is an inconvenient truth to the property growth narrative.
As i have said before, the growing Gen Y situation is an inconvenient truth to the property growth narrative
Why is this an "incovenient truth"? Even if it is true (and it may well be to some extent, although it's a temporary trend in my view), it just means there will be growing demand for well located rental properties. Probably demand for higher quality properties will also increase over time.
In fact, it looks like the "system" is responding quite well to this increase in demand already? Gen-Y renters should be thankful for NG'd property investors currently buying up properties and ensuring that there is enough supply of the rentals they demand. Otherwise, rents would start going through the roof, and we would start hearing about the "rental affordability" crisis pretty soon.
For Aussie property bears, "denial", is not just a long river in North Africa.....
Why is this an "incovenient truth"? Even if it is true (and it may well be to some extent, although it's a temporary trend in my view), it just means there will be growing demand for well located rental properties. Probably demand for higher quality properties will also increase over time.
In fact, it looks like the "system" is responding quite well to this increase in demand already? Gen-Y renters should be thankful for NG'd property investors currently buying up properties and ensuring that there is enough supply of the rentals they demand. Otherwise, rents would start going through the roof, and we would start hearing about the "rental affordability" crisis pretty soon.
Catweasel say what is "through a roof" besides a speculate and a emotion?
How does quantify "through a roof"?
How does it prove its "through roof"?
"Through a roof" evoke a feeling of explosive.
But that depend on how mouse perceive in its skull.
Sydney University housing expert Judy Yates attributed the decline in total home ownership - from 71 per cent to 67 per cent since the mid 1990s - to the spiralling cost of housing. ''This is all about affordability,'' she said.
The "housing expert" clearly did not bother reading the entire ABS release which also stated....
Quote:
For owners with a mortgage and private renters, the proportion of income spent on housing costs in 2011-12 is the same as in 1994-95, at 18% and 20% respectively
The "housing expert" clearly did not bother reading the entire ABS release which also stated....
Have you got the link to the original article ?
thx
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
The "housing expert" clearly did not bother reading the entire ABS release which also stated....
Quote: For owners with a mortgage and private renters, the proportion of income spent on housing costs in 2011-12 is the same as in 1994-95, at 18% and 20% respectively
So despite the fact 'we're' spending the same proportion of our income on buying 'n renting as we were nearly two decades ago, the percentage who own outright has dropped and the percentage who rent has increased - Rather noticeably in both cases it would seem? Charmed I'm sure! But hey, I have been saying I expect our standard of living to drop - So I'm not especially surprised.
The "housing expert" clearly did not bother reading the entire ABS release which also stated....
Quote: For owners with a mortgage and private renters, the proportion of income spent on housing costs in 2011-12 is the same as in 1994-95, at 18% and 20% respectively
So despite the fact 'we're' spending the same proportion of our income on buying 'n renting as we were nearly two decades ago, the percentage who own outright has dropped and the percentage who rent has increased - Rather noticeably in both cases it would seem? Charmed I'm sure! But hey, I have been saying I expect our standard of living to drop - So I'm not especially surprised.
Yes - clearly something other than affordability is having an impact.
The "housing expert" clearly did not bother reading the entire ABS release which also stated....
Mmmm housholds incomes, not individual incomes.
"In 2011-12, both owners with a mortgage and private renter households spent the same proportion of their income on housing costs as they did in 1994-95,” said Ms Cunningham.
Yes - clearly something other than affordability is having an impact.
Perhaps we're spending the same proportion but today are paying a lower percentage of the principal with those payments (due to relatively higher prices), hence the massive reduction in outright ownership...
Logic
29 Aug 2013, 12:11 PM
So that would single income in the past and now dual. What an important fact to leave out
If that is true they are being extremely misleading by saying it is the same now as then.
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