In 1981 homeownership rates for young households (25 to 34 years old) were about 60 per cent - regardless of income. For young households today, owning a house is very income dependent.
"The balance has shifted and gone beyond the tipping point.” - Pisarki
Housing affordability is an vital issue at ANZ, so we sat down with two experts to discuss what’s changed and what can be done to rebalance the scales.
Beyond the tipping point
For National Shelter EO, Adrian Pisarski, housing affordability is a relative term: “People conflate the term housing affordability with affordable housing and they are two very different things.”
Pisarski explains the most significant change in recent times is the number of people who own outright compared with people who have a mortgage.
“That balance has shifted and gone beyond the tipping point. We always used to have more people who owned outright than who had a mortgage but it's now the other way around,” he says.