Introduction

Australia’s lack of affordable housing is in the spotlight (again) and is increasingly morphing into a key battleground area for the 2025 Federal election. The common belief that Australian homes have become unaffordable is understandable, as all the metrics around affordability have deteriorated. But how does the housing situation in Australia compare to our global peers? We go through this issue in this edition of Econosights.

It's not the Great Australian Dream it’s the Great Home Ownership Dream!

They call it “The Great Australian Dream” to own a home. But in reality, isn’t it the goal of everyone to aspire to own their own home? Actually “The Great Australian Dream” was coined from the “The Great American Dream” – it was never ours to begin with! Home ownership rates around the world shows us that Australia’s ~63% home ownership rate (both mortgage and outright owners) is on the low end of the spectrum, especially compared to ex-Soviet European countries (see the next chart). High global home ownership rates indicate that it’s an aspiration of most people to own their own property. In Australia, there are around 2.5 people per dwelling, which has fallen from around 2.8 in the mid 1980s. In comparable countries, household size is similar with Canada at 2.45, the US at 2.49, UK at 2.27 and New Zealand at 2.6.

Read full article from AMP’s Diana Mousina here

Rick Maggi, CFP, Financial Advisor