1380.0.55.010 - Perspectives on Regional Australia: Housing Arrangements - Home Ownership in Local Government Areas, 2011
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 30/07/2013 First Issue
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Introduction HOME OWNERSHIP IN AUSTRALIA Every five years as part of the Census, householders are asked about the nature of their tenure in the dwelling they occupy on Census Night. The Census provides a snapshot of housing occupancy in Australia at a point in time and is an important source of regional data. In 2011, there were 9.1 million dwellings in Australia, an increase of 8.2% since the 2006 Census. Over this period, the number of dwellings grew at a similar rate to the population, which increased by 8.3%. This article looks at the tenure of occupied private dwellings, excluding 'Visitor only' and 'Other non-classifiable' households. Just over two-thirds (67.0%) of Australian households owned their home (with or without a mortgage) at the time of the 2011 Census, down from a rate of 68.1% in 2006. The proportion of households that owned their dwelling outright decreased between Censuses (from 34.0% in 2006 to 32.1% in 2011), while the proportion of households that owned their dwelling with a mortgage increased (from 34.1% in 2006 to 34.9% in 2011). Graph 1. DWELLINGS(a) BY TENURE TYPE - 2006 and 2011 (a) Total occupied private dwellings, excluding 'Visitor only' and 'Other non-classifiable' households. Source: ABS Census of Population and Housing, 2006 and 2011 In 2011, Tasmania and Victoria recorded the highest home ownership rates of all states and territories, 70.4% and 70.1% respectively. The Northern Territory had the lowest home ownership rate with 46.2%. Home ownership rates declined in all states and territories between 2006 and 2011. New South Wales had the smallest decline (from 66.7% in 2006 to 66.5% in 2011) and Queensland had the largest decline (from 65.4% in 2006 to 63.5% in 2011). Graph 2. HOME OWNERSHIP RATES(a) BY STATE AND TERRITORY - 2006 and 2011 (a) The home ownership rate is the number of occupied private dwellings which were owned outright, owned with a mortgage or being purchased under a rent/buy scheme by a member of the household, expressed as a proportion of total occupied private dwellings. Excludes 'Visitor only' and 'Other non-classifiable' households. Source: ABS Census of Population and Housing, 2006 and 2011 The proportion of dwellings owned outright was highest in Tasmania (36.2%) and lowest in the Northern Territory (15.6%). The proportion of dwellings owned with a mortgage was highest in the Australian Capital Territory and Western Australia (38.9% and 37.8% respectively), and lowest in the Northern Territory (30.6%). Tasmania was the only state or territory in which the proportion of homes that were owned outright was higher than the proportion of homes owned with a mortgage. Graph 3. DWELLINGS(a) BY TENURE TYPE, States and Territories - 2011 (a) Total occupied private dwellings, excluding 'Visitor only' and 'Other non-classifiable' households. Source: ABS Census of Population and Housing, 2011 In 2011, home ownership rates varied considerably in LGAs as shown in the following map. Higher ownership rates were found in and around major cities, along the south east coast of Australia and in many of the LGAs in Tasmania. Home ownership rates were generally lower in remote LGAs, such as those in the Northern Territory and far north Queensland. Map 1. HOME OWNERSHIP RATES(a) BY LGA, Australia - 2011 (a) The home ownership rate is the number of occupied private dwellings which were owned outright, owned with a mortgage or being purchased under a rent/buy scheme by a member of the household, expressed as a proportion of total occupied private dwellings. Excludes 'Visitor only' and 'Other non-classifiable' households. High home ownership In the ten LGAs with the highest home ownership rates, over 80% of dwellings were owned (with or without a mortgage) at the time of the 2011 Census. This was considerably higher than the overall home ownership rate of 67.0% in Australia. Table 1. HIGHEST HOME OWNERSHIP RATES(a) BY LGA - 2011
Of the ten LGAs with the highest home ownership rates in Australia in 2011, four were in South Australia, three in Western Australia, two in Victoria and one in New South Wales. All of these LGAs are located near large cities alongside transport links such as highways or expressways. They offer residents housing, along with access to city services and employment. The top two regions, Golden Plains and Nillumbik, were located in Victoria. Golden Plains is in the south-west of Victoria, between Geelong and Ballarat, and around one hour from Melbourne. Nillumbik is located in the outer northern suburbs of Melbourne. Two of the LGAs in South Australia, Mallala and Light, are mostly rural and form part of the greater Adelaide area. Adelaide Hills includes urban and rural areas as it frames the city of Adelaide. Grant is situated in the south-east of South Australia, is mostly rural and encompasses the city of Mount Gambier. The LGA of Chittering can be found in the Wheatbelt region of Western Australia, just beyond the north-eastern fringe of the Perth metropolitan area. Mundaring is on the eastern fringe of metropolitan Perth and Serpentine-Jarrahdale is located south-east of Perth. The LGA of Palerang is in the Southern Tablelands region of New South Wales, adjacent to the ACT border and encompasses Bungendore. While Tasmania recorded the highest overall home ownership rate for all states and territories, the LGA with the highest rate in Tasmania was Kentish with 81.5%, which was among the twenty highest LGAs in Australia. Most LGAs in Tasmania had home ownership rates of over 70%.Low home ownership The LGAs with the lowest home ownership rates were mostly located in the Northern Territory and far north Queensland and were characterised by their remoteness and high proportions of Aboriginal and Torres Strait Islander people. Aboriginal and Torres Strait Islander people made up 75% or more of the populations of all the LGAs in the following table. Table 2. LOWEST HOME OWNERSHIP RATES(a) BY LGA(b) - 2011
In LGAs that include discrete Aboriginal and Torres Strait Islander communities, such as the ones listed in the table above, there are a number of factors which may impact on rates of home ownership. These can include: (Endnote 4)
In both the Closing the Gap targets and Indigenous Economic Development Strategy, the Australian Government, has made a commitment to ensure that Aboriginal and Torres Strait Islander people who have the capacity, are able to access the same home ownership opportunities as other Australians (Endnote 5). There have been a range of programs implemented to increase home ownership rates for Aboriginal and Torres Strait Islander people (Endnote 6).Home ownership rates between 2006 and 2011 Home ownership rates decreased in most LGAs (63% or more) in every state and territory. East Pilbara and Port Hedland were among the LGAs with the biggest decreases in home ownership rates between 2006 and 2011, with declines of 17.8 and 12.4 percentage points respectively. This may be due to an increasing proportion of homes being rented out to accommodate the mining and construction workforces in these LGAs. Between 2006 and 2011, New South Wales and Western Australia had the highest proportion of LGAs with an increase in home ownership rates. In both states, 37% of LGAs had an increase in the rate of home ownership over this period. (a) The home ownership rate is the number of occupied private dwellings which were owned outright, owned with a mortgage or being purchased under a rent/buy scheme by a member of the household, expressed as a proportion of total occupied private dwellings. Excludes 'Visitor only' and 'Other non-classifiable' households. The LGAs with the biggest growth in home ownership rates between 2006 and 2011 are shown in the following table. The LGA of Weipa, in far north Queensland, had the biggest increase in home ownership rates, which increased by 25.6 percentage points from 12.5% in 2006 to 38.1% in 2011. It is characterised by its remoteness and high proportion of workers in the mining industry (the main industry of employment was Metal Ore Mining) in 2011. Aboriginal and Torres Strait Islander people made up 18.6% of the population of Weipa at the 2011 Census, compared with 3.6% for Queensland and 2.5% for Australia. While many of the LGAs with large growth in home ownership rates between 2006 and 2011 were in regional and remote areas, there were also large increases in two metropolitan LGAs: Melbourne and Ashfield, in Greater Sydney. Home ownership rates reflect not only the number of dwellings that are owned, but also the number of occupied private dwellings in the region. In three of the ten LGAs in the table below, the number of occupied private dwellings decreased between 2006 and 2011, and this has contributed to the increase in home ownership rates. These LGAs were Streaky Bay in South Australia and Jerilderie and Conargo in New South Wales. Table 3. BIGGEST GROWTH IN HOME OWNERSHIP RATES(a) BY LGA(b) - 2006 to 2011
New South Wales and Australian Capital Territory Victoria Queensland South Australia Western Australia Tasmania Northern Territory OUTRIGHT HOME OWNERSHIP IN LOCAL GOVERNMENT AREAS This section looks at LGAs with a high proportion of dwellings that were owned outright in 2011. Outright ownership of a home can have many benefits, as a home provides stability and represents an investment that can be a major contributor to economic wellbeing, particularly for older people with reduced incomes in retirement. Higher proportions of outright home ownership have historically been a feature of rural areas, as houses in these areas tend to be less expensive or may have been owned by families for generations. In 2011, the LGAs with the highest proportion of households that owned their dwellings outright were in farming regions, holiday areas and regions with older residents. Of the LGAs with the highest proportions, six were located in Victoria, three in South Australia and one in Western Australia. The LGA of Barunga West, a farming area in the mid-north of South Australia, had the highest proportion of dwellings owned outright in 2011, with 55.9%. This proportion was considerably higher than the proportion for Australia and South Australia, which were 32.1% and 32.8% respectively. Other South Australian LGAs with high proportions of homes owned outright were Yorke Peninsula and Mount Remarkable. Both LGAs encompass rural localities, farming and holiday areas. Compared to South Australia's median age of 39, these three LGAs had older resident populations in 2011. Table 4. HIGH PROPORTIONS OF DWELLINGS(a) OWNED OUTRIGHT BY LGA(b) - 2011
The six LGAs in Victoria with the highest proportion of dwellings owned outright were all rural in nature. The LGA of Buloke is a farming area in north-western Victoria; Queenscliffe is on the south coast of Victoria, along the Great Ocean Road; Yarriambiack is a farming area situated in the north-west of the state; West Wimmera is located along the Victorian / South Australian border; Loddon is located in the north-west of Victoria and encompasses wineries, farming and historic attractions; and Hindmarsh is situated in the far west of the state, neighbouring the LGA of West Wimmera. The LGA of Beverley in Western Australia is located in the Wheatbelt region, south-east of Perth and encompasses rural living and farming. The proportion of dwellings owned outright generally increases with the age of the householder. As people age, their family structures and financial situations change along with their housing needs. Queenscliffe in Victoria had the second highest median age (55 years) of all LGAs in Australia after Victor Harbor in South Australia which showed a median age of 56 years. All of the LGAs in the table above had higher median ages than the median for Australia (37 years).Outright home ownership between 2006 and 2011 The proportion of homes owned outright declined in over half of the LGAs (56% or more) in each state and territory between 2006 and 2011. Over the same period, 38% of LGAs (6 out of 16) in the Northern Territory and 29% of LGAs (41 out of 139) in Western Australia recorded increases in the proportion of homes that were owned outright. The biggest growth in the proportion of dwellings owned outright between 2006 and 2011 are shown in the following table. Of the ten LGAs with the biggest growth, four were located in Western Australia, three in New South Wales and one in South Australia, Queensland and Victoria. Murrindindi in north-eastern Victoria had the biggest increase (from 40.0% in 2006 to 45.0% in 2011). This LGA includes national parks, state forests, farming areas and rural localities. In four of the ten LGAs in the table below, the number of occupied private dwellings decreased between 2006 and 2011, and this contributed to the increase in outright home ownership. These LGAs were Wakool and Conargo in New South Wales, Carnarvon in Western Australia and Streaky Bay in South Australia. Table 5. BIGGEST GROWTH IN THE PROPORTION OF DWELLINGS(a) OWNED OUTRIGHT BY LGA(b) - 2006 to 2011
Owning a home provides many people with security and a store of wealth. This article, the first in a series of three articles, has explored home ownership rates across Australia, the states and territories, and in LGAs. Just over two-thirds (67.0%) of Australian households owned their home (with or without a mortgage) at the time of the 2011 Census. Tasmania recorded the highest home ownership rate of all states and territories (70.4%) and the Northern Territory the lowest (46.2%). Of all the LGAs in Australia, Golden Plains and Nillumbik, both in Victoria, recorded the highest home ownership rates, with 88.5% and 88.4% respectively. LGAs with low home ownership rates were mostly located in the Northern Territory and far north Queensland. The next article in this series examines the proportions of homes owned with a mortgage across Australia, the states and territories, and in LGAs. It will also include an analysis of median monthly mortgage repayments.
ENDNOTES 1. Phillips, B. (2011), The Great Australian Dream - Just a Dream? AMP.NATSEM Income and Wealth Report, Issue 29, July, Sydney, AMP, p. 1. <Back> 2. Andrews, Dan and Aida Caldera Sánchez (2011), The Evolution of Homeownership Rates in Selected OECD Countries: Demographic and Public Policy Influences, OECD Journal: Economic Studies, Vol. 2011/1, p. 212. <Back> 3. ABS, Research Paper: A Review of Regional Development Australia Committee Regional Plans, 2013, cat. no. 1381.0, ABS, Canberra. <Back> 4. Indigenous Home Ownership Paper, Select Council on Housing and Homelessness, March 2013, FaHCSIA, Canberra. <Back> 5. Closing the Gap, Prime Minister's Report 2013, Australian Government, Canberra. <Back> 6. Indigenous Home Ownership Paper, Select Council on Housing and Homelessness, March 2013, FaHCSIA, Canberra. <Back> Document Selection These documents will be presented in a new window.
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