Submission to Select Committee on Intergenerational Housing Inequity

Across all age groups, housing costs eat up a substantial chunk of people’s incomes. In general, home ownership rates rise with age. This means that renting is much more common amongst younger Australians. Some renters may go on to buy their own home – others may not be in a position to do so. For those aged between 35 and 54, owning a home with a mortgage is the most typical arrangement. In the 55 plus age bracket, outright home ownership with no mortgage is the most prevalent situation.

There is clearly an imbalance in the housing outcomes of different age groups. We believe the best way to redress this lies in making housing less expensive for everybody. This means that both renting and buying a home should be made more affordable, so that a smaller portion of family income gets absorbed by housing costs. This ultimately relies on delivering more new homes to both the owner occupier and rental market. For those in younger age groups, the savings reaped from lower housing costs can help strengthen their financial position over the long term.