RENTER NUMBERS SET TO RISE — REPORT




Owning your own home is still a big part of the Great Australian Dream. But for an increasing number of people in years to come, it will remain just that — a dream. 

In fact, up to 40 percent of the population will be renters in the future, according to a new report by the Swinburne University of Technology. 

The report, Australian Home Ownership: Past Reflections, Future Directions, examines the levels of home ownership since the Second World War and what is likely to happen in the future. 

Interestingly, it found the level of home ownership has been relatively stable. In 1976 about 68 percent were owner-occupiers. Forty years later, in 2016, the figure was 67 percent. 

But unfortunately now and into the future, affordability will put ownership beyond the reach of more and more Australians. 

The report states that 50 percent under the age of 60 will be renting over the next 20 years, and the number of owner-occupiers will fall to 63 percent. Also, 51 percent of those renters will be between 25 and 55 years of age.  

For property investors, it’s worth remembering that these figures are forecasts and also that the changing number of owner-occupiers and renters will happen steadily, as has been the case for the past 40 years. 

Further, certain property fundamentals are unlikely to change. For example, people always want to live close to amenities, good infrastructure and job opportunities. As an investor, if you can find properties that tick all these boxes, you’ll be on your way to building a strong portfolio.

* This article does not constitute financial or legal advice. Please consult a professional financial and legal adviser before making any decisions.


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