Millions of Australians will miss out on home ownership as the nation heads towards a long period of slow growth in household incomes, forcing more people to fall back on the age pension to pay for shelter.
The Intergenerational Report heightens the dispute over housing by revealing the pressure on the budget as more people head towards retirement without owning homes, forcing them to dip into their super or fall back on the age pension to pay rent.Advertisement Australians aged 30 to 34 have already experienced a big fall in home ownership rates. Only 50 per cent in this age bracket owned a home in 2021, compared with 68 per cent in 1981, and the new report shows a similar trend among other age groups.
Chandler-Mather called for stricter rent controls and a mass building of public housing, as well as the end to negative gearing. “Those are three policy settings that existed in Australia for large parts of the 20th century after World War II,” he said. ”And those were the policy settings that created high rates of home ownership and much lower levels of housing stress.
The single largest expense will be health, up by 117 per cent to $8677 per person by the early 2060s. Defence will also eat up more of our taxes, climbing 74 per cent to $3263 per person.