6. Structural Sustainability of Homeownership in Australia

  1. Colin Jones2,
  2. Michael White3 and
  3. Neil Dunse2
  1. Judith Yates

Published Online: 24 FEB 2012

DOI: 10.1002/9781118280829.ch6

Challenges of the Housing Economy: An International Perspective

Challenges of the Housing Economy: An International Perspective

How to Cite

Yates, J. (2012) Structural Sustainability of Homeownership in Australia, in Challenges of the Housing Economy: An International Perspective (eds C. Jones, M. White and N. Dunse), Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781118280829.ch6

Editor Information

  1. 2

    Institute for Housing, Urban and Real Estate Research, Heriot-Watt University, UK

  2. 3

    School of Architecture, Design and the Built Environment, Nottingham Trent University, UK

Author Information

  1. University of Sydney, Australia

Publication History

  1. Published Online: 24 FEB 2012
  2. Published Print: 4 APR 2012

Book Series:

  1. Real Estate Issues

ISBN Information

Print ISBN: 9780470672334

Online ISBN: 9781118280829

SEARCH

Keywords:

  • Affordability;
  • House Prices;
  • Owner Occupation;
  • Generations;
  • Mortgage Finance;
  • Australia

Summary

Unlike a number of western economies, Australia's housing system appears to have survived the global financial crisis relatively unscathed. After a short-lived downturn, house prices returned to the double-digit inflation experienced a few years earlier. In fact, Australia has not faced a major downturn in real house prices in the past 40 years or so. This chapter examines the possibility that sustained increases in real house prices, rather than volatility in real house prices, has created structural pressures on Australia's homeownership rate that will continue over the next 30 to 40 years. It provides an overview of Australia's housing system as it has developed, of the policies that have contributed to current outcomes and of the impact that housing has on living standards of older and lower-income households. It provides projections suggesting that Australia's current homeownership rate is not sustainable over the next 40 years.