A key element of Australia’s economic boom is the boom in home ownership, which is set to rise further and faster than in any other major economy.
The housing market in Australia has seen an average annual growth of 1.6 per cent in the past five years, according to a new study by housing experts at the University of Adelaide.
The growth is even more pronounced when you look at the number of households, as the study notes that there are about 9.5 million households in Australia today.
That’s more than double the number at the start of the decade.
And the surge in home buying has accelerated in the wake of the global financial crisis.
The number of people living in houses in Australia increased by 11 per cent between July 1 and December 31, according a new analysis from the Australian Institute of Family Studies (AIFS).
The increase was the largest increase in five years and was the fastest since 2010, according the AIFS.
“In particular, the rate of increase in households owning their own home is the fastest in the OECD, even though the growth in Australia’s population has been slowing,” the report states.
The study’s authors, economist Mark Pugh and sociologist Dr Jill Scott, say the number one cause for the growth is the global economic downturn.
“The Australian economy has been contracting and the unemployment rate is now well above 6 per cent,” Pugh said.
“It’s quite possible that this has contributed to households buying their own homes.”
There’s been an increase in house prices, and the increased availability of property has fuelled demand.
“The trend has accelerated since the global crisis and is set for more of the same as the average price of a home in Australia remains about $1 million higher than it was a year ago.”
Our housing bubble has been one of the biggest drivers of the property market,” Dr Scott said.
But Dr Scott warns that the increase in home prices is not sustainable and the government must take steps to curb the boom.”
I think the next couple of years, particularly the housing market, will continue to be a problem for the country,” she said.