The Property Council of Australia has pointed to a report from the National Housing Supply Council as evidence that the "dream of buying a home is quickly fading" for many Australians.
The NHSC report found a high level of pent-up demand for affordable housing, and said affordability pressures are pusing a "marked increase" in the number of young adults living in the parental home.
"As time progresses, it now seems certain that the aggregate rate of home ownership will drop and the proportion renting will increase significantly," the report said.
Residential Development Council executive director Caryn Kakas said the report signalled a troubling shift.
#pb# "The forecast increase in the proportion of households renting signifies the death of the great Australian dream of home ownership for many Australians," Kakas said.
The HIA echoed Kakas' remarks, saying that housing would continue to become less affordable without government intervention. HIA chief executive of industry policy and media Graham Wolfe argued that a dwindling supply of affordable housing would have flow-on social effects.
"If future generations of Australians give up the dream of home ownership and this is not matched with a substantial increase in private or public investment in housing, rental costs will increase beyond the means of many Australians, placing enormous pressure public housing waiting lists and the welfare system," he said.
