New data released by the Australian Bureau of Statistics for the 2011/2012 financial year reveals a steady decline in outright home ownership throughout the country.
Researcher at RP Data Cameron Kusher said the survey results reveal “a steady but consistent decline in households that occupy a home without a mortgage. Subsequently, there has been a lift in the proportion of households with a mortgage and those occupied by renters”.
The data shows that in 2011/2012, only 30.9 per cent of households occupied a home without a mortgage - down from 41.3 per cent 15 years ago. Over the same time period, households that hold a mortgage increased from 28.3 to 36.6 per cent.
According to Mr Kusher, the increase in households owned with a mortgage is likely to be one of the factors slowing consumer spending.
“With a recent shift in consumer attitudes away from spending and more towards savings, the high proportion of the population with a mortgage is also likely to be having a dampening effect on retail trade and subsequent economic growth,” he said.
Mr Kusher said retail trade figures released this week for the 2012/2013 financial year showed that retail trade had increased at its slowest rate over a financial year since 1961/1962.
“With lower economic growth forecasted coupled with higher rates of unemployment, we would anticipate that the high proportion of residents with a mortgage will continue to spend in a restrained manner, particularly if they hold a large debt and are concerned about job security,” added Mr Kusher.
