Recent AHURI findings revealed that a growing number of Australian renters – 59% – see themselves as likely “forever renters,” with little expectation of homeownership.
“Our survey found three out of five private renters don’t think they will ever be able to afford to buy a home of their own,” said Emma Baker (pictured above), a professor at the University of Adelaide.
This marks a major shift in Australians’ housing expectations, with homeownership feeling increasingly out of reach.
Despite rising acceptance of lifelong renting, the desire for homeownership remains strong, AHURI found.
Only 19% of renters are satisfied with renting long-term, while 78% still aspire to own.
Financial barriers are a major obstacle, with more than half of survey respondents unable to afford a deposit and 41.7% finding no affordable properties.
Rental rates have surged across age demographics over the past decade, with expectations that this trend will continue.
Between 2011 and 2021, the proportion of renters grew in every age bracket, with urban areas experiencing particularly sharp increases.
“The ‘rise of renting’ in Australia is a multigenerational phenomenon,” Baker said.
In related research released in February, AHURI found that higher-income households are increasingly opting to rent rather than buy, further reducing the availability of affordable rental homes for very low-income households.
Another AHURI study, released in August, revealed that a growing proportion of lower-income Australians aged 50 and older, who do not own a home, have little choice but to rely on expensive and insecure private rental housing.
According to AHURI, current tax benefits favour homeowners, leaving renters to bear higher costs without similar support.
As a result, there’s growing pressure to make renting a stable, viable long-term option, especially for low-income older renters with limited superannuation.
The AHURI study suggested that economic policy adjustments could benefit a range of renter groups, such as long-term renters and “rentvestors” who rent out properties they own while renting themselves.
Tax benefits on non-property investments could help these renters build financial resources, reducing reliance on “rentvesting” and helping stabilise housing markets.
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