The Trend of Declining Owner-occupiers
From 2016 to 2020, the Australian population grew by more than one million, but rent barely moved until now. When the new millennia started, a lot of Australians and foreigners wanted to get into the market to become landlords as today, there’re more than two million landlords in Australia. This has pushed the property prices up as landlords had to outbid those who wanted to own a home. In 1966, Australia had one of the highest rates in the world for homeownership, but since 2000 the owner-occupation has been on the decline.
The pandemic has inflicted RBA to lower the interest rates to record lows and together with first home buyer grants, more people were encouraged to get their hands on property rather than continue renting. However, as the demand soared for the last couple of months and influenced the property prices to increase, some buyers are experiencing a “boom fatigue”.
While the government initiatives helped to increase the number of owner-occupiers, property buyers are starting to second guess their ability to enter the market. As the property stock is limited, but the demand is high, new buyers are finding it hard to get into the market, so they’re putting their plans of homeownership on hold. This is also because they need to reassess what they can afford since the house price has increased across the country. On the other hand, this means there will be a continually increasing demand for rental properties as buyers are getting fatigued by the boom.