Australia Yearbook - 2009-10

$
500
400
10.23 AVERAGE WEEKLY HOUSING COSTS, By tenure — 2007–08
Owner without a mortgage
Owner with a mortgage
Renter – state/territory housing authority
Renter – private landlord
300
200
100
0
Under 35 35–44 45–54 55–64 65 and over
Age group (years) of household reference person
Source: ABS data available on request, Survey of Income and Housing.
dependent children, owned their home (46% and
58% respectively) (graph 10.20 and table 10.22).
The home ownership rate was considerably lower
for young lone-person households (29%).
Home ownership rates increased with age of
reference person up to age 55–64 years for all
family and household groups. Beyond this age
group, the home ownership rate for couple with
dependent children households continued to
increase, while the rate for lone parent with
dependent children and couple only households
declined. At age 65 years and over, home
ownership rates for lone person and couple only
households converged to some extent, reflecting
the transition of couple only households to lone
person households following the death of one
partner.
One parent families with dependent children had
the lowest home ownership rate (38%) and the
highest proportion of renters, particularly public
renters (table 10.22). In 2007–08, 16% of all one
parent families with dependent children were
renting from a state/territory housing authority
and 42% were renting privately. Lone person
households also had relatively high proportions
of renters, with 9% renting from a state/territory
housing authority and 28% renting privately
(table 10.24).
People living alone are more likely to live in high
density housing than any other group,
particularly when young. In 2007–08, the
proportion of lone persons living in a flat, unit or
apartment ranged from 41% of those aged under
35 years to 19% of those aged 65 years and over.
Even so, lone persons were more likely to have
one or more spare bedrooms than families with
children. In 2007–08, 86% of lone-person
households and 98% of couple-only households
had one or more spare bedrooms (graph 10.21).
There are long-term benefits in home ownership.
Initially, the cost of home purchase is often far
greater than renting (due to the costs of deposits
and fees, as well as ongoing mortgage
repayments). However, the much lower costs
associated with owning a home outright, and the
investment that a home represents, can be major
contributors to economic wellbeing, particularly
for older people, as many retire on considerably
reduced incomes.
In 2007–08, the average weekly housing costs of
young households with a mortgage was $472 –
74% more than the average weekly rent of young
private renters (graph 10.23). The difference in
housing costs between owners with a mortgage
and private renters was progressively smaller in
older age groups, mainly because of progressively
lower mortgage payments. For households with a
reference person aged 65 years and over, private
rents were higher, on average, than the housing
costs of home owners with a mortgage.
The difference in housing costs between younger
and older owners with a mortgage is largely a
reflection of the difference in house prices, and
hence the amount borrowed, at the time of
purchase. On average, recent home buyers paid
higher prices than those who bought their homes
ten or more years ago. In 2007–08, more than half
(52%) of young households with a mortgage were
332 Year Book Australia 2009–10