Since then, the rate has steadily declined. Today, it sits around 66-67%, and at the 2021 Census - counting only occupied dwellings - it was just 63%.
On the surface, the change might seem modest - a drop of around 10 percentage points over six decades - but the generational breakdown reveals a more dramatic story.
Generations tell the real story
The biggest shift is not just in how many Australians own property, but when they are able to buy.
- 25-29-year-olds: Homeownership fell from 50% in 1971 to 36% in 2021
- 30-34-year-olds: From 64% to 50% over the same period
- 50-54-year-olds: Even this group saw a decline from 80% in 1996 to 72% in 2021
Successive cohorts since the baby boomers have recorded progressively lower ownership rates.
This means younger Australians are getting on the property ladder later, if at all, while older Australians hold onto homes for longer.
Why the shift? The usual suspects, and some new ones
Affordability squeeze
Median house prices are now nearly eight times the average income, up from around four times in the 1980s. Wage growth has been sluggish, while property prices, especially in our capital cities, have surged over that time.
Changing life patterns
Milestones like marriage, children, and long-term job stability now occur later in life than they used to, delaying home purchase decisions. More Australians live alone, increasing per capita housing demand.
Policy environment
Post-war decades featured pro-ownership policies, including public housing sell-offs, war service loans, and generous tax settings. Today's system still offers incentives to first-home buyers, but they are competing in a tighter, more expensive market.
The Bank of Mum and Dad and the Great Wealth Transfer
Enter one of the most significant forces shaping tomorrow's ownership landscape: the Bank of Mum and Dad (BoMaD).
- Around 60% of first-home buyers now receive financial help from family, most often for deposits.
- BoMaD is Australia's ninth-largest mortgage lender if ranked alongside banks.
- The Productivity Commission estimates inheritances and gifts valued at $120 billion in 2018 could quadruple by 2050.
As baby boomers pass on property and financial assets, the "great intergenerational wealth transfer" will be both an opportunity and a challenge.
It could help some younger Australians enter the market, but it will almost certainly widen inequality between those with property-owning parents and those without.
Do interventions work?
Federal and state governments are well aware of declining ownership rates and have rolled out numerous schemes to help first-home buyers.
- Home Guarantee Scheme (HGS) - Allows deposits as low as 5% (2% for single parents) without paying lenders mortgage insurance (LMI).
- Help to Buy (shared equity) - The government takes up to a 40% equity stake in new homes, reducing upfront costs.
- State grants and stamp duty concessions - From $10,000 grants in NSW to $30,000 in QLD, plus exemptions or discounts for eligible buyers.
These policies certainly help some people buy sooner. But in my mind, all they are doing is inflating demand in price brackets that meet the grant criteria, pushing up prices for the very buyers they aim to help, as well as future buyers down the line.
What lies ahead
Three converging forces will shape the future of homeownership in Australia:
- Demographic change - As boomers age and estates transfer, ownership rates could lift for those who inherit property or cash.
- Wealth inequality - Those without access to BoMaD or inheritance may find ownership slipping even further out of reach.
- Policy direction - Demand-side incentives will need to be paired with meaningful supply-side reforms to avoid simply shifting prices upward.
Forecasts suggest the national ownership rate could slip to 63% by 2040, with under-55s possibly falling below 50%.
Without reform, we could face not just a housing crisis, but a retirement poverty crisis for future renters.
Final word
Australia's homeownership story has moved from a universal expectation to a mixed reality - part aspiration, part privilege.
Whether the coming decades reverse that trend or entrench it will depend on how we manage wealth transfers, design housing policy, and address affordability head-on.
However, what I do see is the ongoing need for property investors to provide rental accommodation for the larger cohort of Australians who will be renting for longer (or even all their lives).
While some argue that this is taking advantage of those who can't afford to buy a home, I view it differently.
Property investors are providing a service. They are providing accommodation that, in other countries, the government would typically provide.
If the Australian government had to provide this rental accommodation, it would have to find the money somewhere, and we know that it is currently short of funds.
So if the government were to take the role that property investors currently provide, it would have to raise significantly more taxes from those who are complaining about property investors' tax incentives.
Image by Julia M Cameron on Pexels
