Is Australia's Home-ownership Rate Really Stable? An Examination of Change between 1975 and 1994

Abstract

Australia has exhibited a remarkably stable home-ownership rate of 70 per cent for over thee decades. However, this paper questions whether this rate is sustainable. Decomposition techniques based on tenure choice models are used to provide evidence of changing homeownership patterns in Australia between 1975 and 1994. The results indicate a distinct change in home-ownership propensities which is neither uniform across age-groups, nor uniform for different household types with both the same and with different levels of income. A number of tentative explanations are proposed, each of which provides the basis for further research on the factors affecting household tenure decisions. This is essential if the potential for a significant decline in home-ownership is to be seen as a matter of concern.