Home ownership and housing tenure

Secure and affordable housing is fundamental to the wellbeing of Australians. Home ownership continues to be a widely held aspiration in Australia, as it affords owners with security of housing tenure and both long–term social and economic benefits (AIHW 2023). There has been ongoing public conversation about the rate of home ownership and housing affordability in Australia. For related topics, see Housing affordability and Housing assistance.

In 2021, there were nearly 9.8 million households in Australia (ABS 2022a). Where household tenure was known:

• 67% (6.2 million households) were home owners
  • 32% (2.9 million households) without a mortgage
  • 35% (3.3 million households) with a mortgage
• 31% (2.9 million households) were renters
  • 26% (2.4 million households) were renting from private landlords
  • 3.0% (277,500 households) from state or territory housing authorities
  • 2.4% (223,600 households) from other landlords.
• 2.1% (192,200 households) were other tenure, including households which are not an owner with or without a mortgage, or a renter (ABS 2022a).

Although 2021 Census of Population and Housing (Census) data provides the most comprehensive view of housing tenure among Australian households, it is only conducted every 5 years. During non-Census periods, other survey data can be used to monitor changes in housing tenure. The Survey of Income and Housing illustrates similar trends to the Census. In the 20 years to 2019–20, there was a decline in the proportion of households owning their home without a mortgage and increases in households with a mortgage and in private rental agreements (Figure 1).

Figure 1: Proportion of households by housing tenure type, 1994–95 to 2019–20

Note: Values have been interpolated for non-survey years.
Source: ABS 2022b

Trends in home ownership

Census data from 2021 indicate a home ownership rate of 67% – including both outright owners and those with mortgages – down from 70% in 2006. 

Despite this recent decline, overall home ownership has remained between 67% and 70% since the early 1970s. This stability is largely driven by Australia’s ageing population, who are more likely to own their homes outright (Burke et al. 2020). As a result, home ownership rates differ markedly by age, with older Australians more likely to own their homes, while younger age groups face greater barriers to home ownership.

The following analysis calculates home ownership rates for specific age groups, based on the household reference person's age, year of birth (birth cohort) and tenure type in private dwellings.

Home ownership among 30–34-year-olds fell from 64% in 1971 to 50% in 2021, and for 25–29-year-olds it dropped from 50% to 36% (Figure 2). Among those nearing retirement, home ownership also declined; for 50–54-year-olds, the rate decreased from 80% in 1996 to 72% in 2021.

Home ownership rates by birth cohort further illustrate the trend (Figure 2). Australians born between 1947–1951 saw an increase from 54% home ownership at age 25–29 (in 1976) to 82% at age 70–74 (in 2021). By contrast, those born between 1992–1996 had a home ownership rate of 36% when they were aged 25–29 (in 2021).

Home ownership rates have generally decreased with each successive birth cohort (Figure 2). The home ownership rate has been higher in only two instances; 0.2 percentage points for the 1977–1981 cohort in the 25–29 age group and 0.3 percentage points for the 1982–1986 cohort in the 35–39 age group. In the most recent results, the home ownership rates in birth cohorts 1972–1976, 1977–1981 and 1982–1986 increased to similar levels as their preceding birth cohort. However, rates were still lower compared with older birth cohorts.

Figure 2: Home ownership rate by birth cohort and age group, 1947–1951 to 1992–1996

Notes:

1. Analysis excludes not stated.
2. Home ownership rates reflect the year the household reference person was born.
3. Census data; data for 1991 has been extrapolated.

Source: Unpublished, AIHW analysis of ABS data.

The home ownership rate for Aboriginal and Torres Strait Islander (First Nations) people in 2021 was 42%. This was the highest rate ever reported for First Nations people, with home ownership rates steadily increasing from 25% in 1981. Broadly, the rate of home ownership for First Nations people has increased for each successive birth cohort (Figure 3), however, rates for First Nations people were consistently around 20 percentage points lower than home ownership rates for non-Indigenous Australians across all birth cohorts and age groups.

Figure 3: First Nations home ownership (%), by birth cohort and age group, 1947–1951 to 1992–1996

Notes

1. Analysis excludes not stated.
2. Home ownership rates reflect the year the household reference person was born.
3. Data are small for some states/territories and some age groups within birth cohorts; data points have been suppressed where the numerator is less than 20.
4. Comparisons over time should be approached with caution as trends may be affected by changes in Indigenous identification over time.

Source: Unpublished, AIHW analysis of ABS data.

Financial support for home buyers

Financial support plays a critical role in shaping access to home ownership in Australia. Government programs and lending by financial institutions work together to reduce barriers for individuals and families.

Government support

Governments offer various financial supports to help individuals and families purchase a home, particularly for first home buyers, low-income households, and First Nations people.

Key programs include Home Purchase Assistance, the Home Guarantee Scheme, the First Home Owner Grant Scheme, and the First Home Super Saver Scheme. These programs provide support to eligible buyers, helping them purchase homes with smaller deposits.

Home Purchase Assistance are state/territory government initiatives designed to help low-income households access and maintain home-ownership. They provide various forms of financial support including direct lending, concessional loans, and mortgage relief. In 2023–24, around 32,000 households in Australia received Home Purchase Assistance – a decline compared to previous years, with 36,900 households receiving HPA in 2022–23 and 43,300 in 2021–22 (AIHW 2025).

Another major initiative is the Home Guarantee Scheme (HGS), which helps Australians enter the property market sooner by reducing the deposit required to buy a home. This is made possible through a government guarantee that eliminates the need for Lenders Mortgage Insurance. The Scheme includes the First Home Guarantee, Family Home Guarantee, and Regional First Home Buyer Guarantee (RFHBG), each targeting different groups of eligible buyers. Buyers apply through participating lenders, and once pre-approved, they can secure a place in the Scheme.

In 2023–24, 50,000 HGS places were made available – 35,000 for first home buyers, 10,000 for regional buyers, and 5,000 for eligible single parents or carers – with almost 9 in 10 (88%) places taken up (Housing Australia 2024).

The Indigenous Home Ownership Program supports First Nations people by providing affordable home loans and tailored assistance to help them buy a home. Launching in late 2025, the Help to Buy program will enable eligible low- to middle-income earners to purchase a home through a shared equity model, reducing the deposit and mortgage burden.

For more detailed information on the types of government support available to home buyers, see the Treasury website.

Lending commitments from financial institutions

Financial institutions are an essential part of the housing market, providing finance to access home ownership, particularly for first-time buyers.

The number of new lending commitments to owner-occupier first-time home buyers has fluctuated considerably in recent years. From around 103,000 commitments in 2018, increasing to a peak of approximately 163,000 in 2021, before dropping to 111,000 in 2023. Over 12 months to March 2025, commitments have remained relatively steady at 117,000 (ABS 2025a).

Fluctuations are influenced by a mix of economic conditions, housing market dynamics, and government policy settings. Record-low interest rates during the COVID-19 pandemic, combined with government initiatives such as the First Home Owner Grant and the Home Guarantee Scheme, drove an increase in lending activity in 2020 and 2021. In contrast, the rapid rise in interest rates from mid-2022, coupled with increased median house prices and mounting cost-of-living pressures, likely contributed to a marked decline in first home buyer lending commitments.

Trends in the rental market

The overall proportion of households renting has increased over the past couple of decades.

The following is based on the Australian National University’s PolicyMod data to illustrate how this trend has evolved across different household types. The PolicyMod data offers estimates of tenure trends. Estimates are generated from a microsimulation model based on the 2019–20 ABS Survey of Income and Housing, and takes into account changes in population, household incomes, rents, the labour market and government policy settings related to income and social security payments.

Notably, since 2000 the rise in the share of renting households is most pronounced among households headed by the middle two age groups – 35–49 and 50–64 years – highlighting a growing reliance on rental accommodation among working-age Australians who, in previous generations, were more likely to be homeowners (Figure 4).

Figure 4: Households renting, by age of household reference person, 1984 to 2019-20

Notes

1. Figure 4 uses data from PolicyMod, a microsimulation model based on the ABS Survey of Income and Housing (2019–20). 
2. Figure 4 presents data from calendar years for 1984 and 1986. From 1988 to 2019, the data represent financial years (e.g., 1988–89 to 2019–20).
3. Renters includes households renting through private landlords, state and territory housing authorities, and all other landlord types. 

Source: Unpublished, AIHW analysis of PolicyMod data (ANU CSPR 2025).

Beyond age demographics, employment status also reveals a shifting rental landscape. The proportion of renters among employed Australians has increased steadily over the past few decades. In 2019–20, 36% of employed household reference persons were renting, up from 29% in 2000 (Figure 5). This shift underscores the growing challenges of attaining home ownership, with many working individuals unable to enter the property market, particularly in high-demand urban areas.

Additionally, there has been a noticeable rise in the proportion of couples renting – both with children (from 20% in 2000 to 26% in 2019–20) and without children (from 18% to 28%) (Figure 5).

Figure 5: Households renting, by selected household characteristics, 1984 to 2019–20

Notes

1. Figure 5 uses data from PolicyMod, a microsimulation model based on the ABS Survey of Income and Housing (2019–20). 
2. Figure 5 presents data from calendar years for 1984 and 1986. From 1988 to 2019, the data represent financial years (e.g., 1988–89 to 2019–20). Renters includes households renting through private landlords, state and territory housing authorities, and all other landlord types.
3. Renters includes households renting through private landlords, state and territory housing authorities, and all other landlord types.
4. Unemployed persons are those aged 15 and over who were not employed in the reference week, were available to work, and had actively looked for work in the previous four weeks or were due to start a job within four weeks.

Source: Unpublished, AIHW analysis of PolicyMod data (ANU CSPR 2025).

What factors are influencing these changes over time?

Rising house prices, subdued wage growth, and changes in family formation and household composition have shaped home ownership trends in recent decades. Combined with increased investment in residential property and ongoing population growth, these factors have contributed to a decline in home ownership and a corresponding increase in private renting.

Escalating house prices

House prices have been a key determinant in shaping patterns of home ownership over the past decade. Between the December 2011 and December 2024 quarters, the mean price of residential dwellings more than doubled, rising from $486,900 to $995,600 (ABS 2025b). The sharp increase in prices has made home ownership unaffordable for many, meaning more people can only afford renting.

Income-housing gap  

While housing costs have risen, wage growth has remained relatively subdued. Between 2011–12 and December 2024, median household disposable income grew by 56%, with a 104% rise in the mean price of residential dwellings over a similar period – from December 2011 to December 2024 (ANU CSPR, ABS 2025b). This widening gap has made it increasingly difficult for many Australians to save for a home deposit.   

As of September 2024, it would take a median income household 10.6 years to save a 20% deposit for a median-priced dwelling – longer than the 20 year-average of 9.0 years since 2004 (ANZ and Corelogic 2024). Consequently, renting has become a more financially viable option for many, especially younger Australians, compared to home ownership.

Family formation and household composition

Family structure and marital status are closely linked to housing tenure (Baxter & McDonald 2005; Stone et al. 2013). Extended time spent in education, delayed entry into full-time work, and later transitions into marriage and family life are among the factors suggested to contribute to lower home ownership rates, particularly among younger adults (Baxter & McDonald 2004).

In addition, in recent decades, there has been an increase in single-person and single-parent households, contributing to a decline in average household size. These household types typically have lower home ownership rates compared to couple-based households (Parliamentary Library 2019).

Increased property investment

Over the past two decades, the Australian residential property market has experienced a sharp rise in investor activity (ATO 2024b).

While the investment market has expanded the availability of rental housing, it has also reduced the number of homes available to owner-occupiers. As a result, many aspiring first-time buyers face greater competition, making it more likely they will remain in the rental market.

Population growth and urbanisation

Population growth leads to the formation of more households, which increases demand for housing (ABS 2024c). Between 2014 and 2024, Australia’s population increased by 3.7 million, with most of this growth concentrated in the capital cities.

Collectively, Australia’s capital cities grew by 428,000 people (2.4%) in 2023–24 and by 554,000 people (2.9%) in 2022–23 – both figures substantially exceeding the average annual growth of 294,000 people (or 1.8%) for the capital cities over the past two decades (ABS 2024).

Where do I go for more information?

For more information on home ownership and housing tenure, see:

• AIHW
  • Housing Assistance in Australia
  • Housing data dashboard
• Australian Bureau of Statistics (ABS)
  • Australian Social Trends 2014
  • Housing Occupancy and Costs, 2019–20 financial year
  • Households Income and Wealth, 2019–20 financial year
  • Housing: Census