Outright home ownership has long been regarded as a supporting pillar of Australian retirement incomes policies. Increasingly, concerns that rising mortgage debt and falling home ownership rates in later life are undermining the role of home ownership in supporting retirees’ financial wellbeing.
Homeownership serves multiple purposes over the life cycle: It acts as a home as well as a store of wealth to guarantee financial security in retirement. Its lack in old age compromises security of both tenure and finances. Much has been written about housing and homeownership. Here we apply the prism of population ageing to bring new insights to the topic. This brief is in three parts.
According to data from the Australian Bureau of Statistics Survey of Income and Housing, home-ownership rates among Australians aged 55-64 years dropped from 86% to 81% between 2001 and 2016. Mortgage burdens have spiked in the 55-64 age group. In 2001 roughly 80% were mortgage-free. By 2016 this had plummeted to only 56%. Indebtedness is even growing among owners aged 65 and over.
Housing outcomes affect financial and personal health and wellbeing over the lifecycle. And as lifespans increase and Australia’s population ages it is important to continue to examine the interactions between demography and housing. This research brief explores the current state and projected future of such interactions, marrying policy developments with the latest data and research.
Within the US, the 65+ age group, most recent income gains have gone to the highest earners, and the number of households with housing cost burdens has reached an all-time high.
Housing policy in Australia has a split personality: we are either shaking our heads at how hard it is for wealthy millennials to buy their first home or we are wringing our hands at the plight of the homeless. Policymakers have responded in a piecemeal and often counterproductive fashion to these individual and seemingly isolated issues, providing financial incentives to first homebuyers and cri
Until now, the majority of older people in Australia have achieved the goal of owning their own home outright. Hence, policymakers have typically shown little concern about the size and budget costs of rental housing assistance programs for seniors.
Households headed by someone 50 or over represent 55 percent of all the nation’s households. • Over the past several years, the most significant growth in older households came from baby boomers aged 65- 74.
Australian retirees will face a housing crisis within 15 years unless urgent action is taken, according to the Council on the Ageing. It drew attention to the impact on older Australians of rising prices, rising rents, huge mortgage debt and the scarcity of suitable homes. The assumption that Australians retire in a home they own underpins the nation’s superannuation and pension systems, but thi
Government strategies to manage population ageing largely assume that older Australians are home owners. There is often an implied association between home ownership and ageing well: that is, older Australians who own homes are seen as having made the right choices and as being less of a budget burden. The problem with this approach is that not everyone is or can be a home owner.
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