Home Ownership & Renting:
“The… dream of home-ownership is alive and well, despite the growing housing affordability crisis, according to the latest 2016 census data. However, the nation’s strong overall home-ownership rate is slowly declining.”
A clear picture of the UK housing market, where renting is growing and home ownership is in decline – not at all, this is a piece from yourinvestmentpropertymag Australia!
We tend to think that the so called housing crisis is unique to Britain, but this is far from the case. Across the Anglosphere – the US, Canada, Australian and New Zealand the same picture emerges.
Basically, ultra-low interest rates around the globe have pushed up asset prices to a point where people on wages that have be relatively static for many years, simply can’t afford to buy. With property price-to-earnings ratios across the world at historic highs, there are few signs that this will change until interest rates rise and prices come down, if that ever happens.
The Australian report says:
“Comparing home-ownership rates since the 2011 census, it’s pretty clear there’s a slow but steady decline in overall home-ownership rates. It’s down by 2.9%, from 64.9% of all Australian households in 2006 to 62% in 2016.”
“One aspect of housing affordability that is being masked by these numbers is the ability to purchase a home based on age and income. Recent studies indicate that aspiring first-home buyers try various means to enter the property market, including taking on very high mortgage debt and moving to outer urban locations. Some even delay having children.
“The number of renters is on the rise. Last year, over two million Australian households rented privately, either from real estate agents or private landlords. The growth of the private rental sector highlights the high costs of home purchase. However, many households that rent complain of an overall lack of security and poor control over rental increases.”
All sound very familiar? You bet it does.