While owner-occupier numbers have risen over the past four years, they have proportionately declined, with Sydney reaching a level not seen in more than half a century.
According to the latest data from KPMG, since 2021, nationwide, nearly 600,000 Australians have become owner-occupiers, climbing from the previous four-year period’s total of 490,000.
Despite an increase in the total number of owner-occupiers across the country, their share of the market has declined by 0.4 per cent.
KPMG found that NSW experienced the largest drop in the proportion of owner-occupiers in the market, as home ownership became out of reach for many young Australians.
KPMG urban economist Terry Rawnsley said Sydney had led the way in declining ownership rates, down from 61.1 per cent to 59.9 per cent, with the city falling to its lowest level in 70 years.
“Sydney has gone backwards in home ownership by more than half a century,” Rawnsley said.
“The city probably has not seen ownership rates this low since the late 1950s, which shows just how far affordability has moved against households trying to buy where they live.”
While Sydney’s rates declined, Victoria held firm, with Western Australia and Queensland actually recording rises.
Western Australia recorded the highest proportion of owner-occupiers in the nation, with 69.9 per cent of residents owning the homes they lived in.
Queensland experienced the largest jump over the period, rising from 63.9 per cent to 64.9 per cent.
Rawnsley said that the mid-sized markets had been buoyed by their relative affordability, low borrowing costs, and workplace flexibility.
“As a result, people may have sold their homes in those states or taken advantage of cheaper housing to enter the property market when they otherwise could not have afforded to do so in somewhere like Sydney.”
He said that with the owner-occupier rate significantly lower than it was two decades ago, the next generation of buyers needed further support.
“In addition to boosting housing supply, levelling the playing field for first home buyers and supporting their access to home ownership sooner are really important reforms.”
While owner-occupier rates had declined nationally, Rawnsley said that Australians had not yet given up hope.
“The dream of owning a home is far from dead.”
“Australians are adapting, relocating and working hard to get into the market, and a combination of more housing supply and targeted support is creating a pathway to home ownership for more households.”
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