Percentage of Australians who rent

Reading up on the stats of the rising number of people who rent I find it interesting that the percentage seems to vary quite a lot between states. Also the decline in home ownership seems to be similar in UK NZ USA etc.

Do you think we will move to a situation like much of Europe where the majority of folks end up being renters for life?

 

Yep. the trend has been there for many years.
Gen Y not very interested in home ownership.
Millenails even less.

 

I think it makes sense, rent where you want to live for lifestyle and invest. Its probably smarter option.

 

Yes I have been reading an older book book by Jan Somers which came out in 1993 and she was talking about it then. Maybe in a few years there will be more renters than owners perhaps?

 

Next generation have no incling to invest in RE.
They have been raised on the FOMO lifestyle which started with Gen X coddling their kids for FOMO.
Travel, spend, cosemtic surgery, tablets, PS5s etc in their 20s...anything they want so they don't miss out and be unhappy.
Of course they are now the snowflake generation.

 

Millenials are just waiting to inherit boomer property and cash. One issue that seems to assist them is changed lending policies vs us oldies. In our day banks didnt lend to women and more of them have careers these days and juggle family, kids and a career...to pay for the home and holidays. They do see paying huge amounts of rent as a zero sum game and want to buy but not at the sacrifice of lifestyle. I would say working women have increased affordability and investment property ownership.

 

That's not my memory.
They did not lend to women who stayed at home with no taxable income. Which is normal.

 

Depends on government policy really.

Those stereotypes are a bit silly though, Boomers probably paid way more for a VHS than the cost of an iPhone and tablet. Not to mention possibly the most easily offended generation, who has Alan Jones been catering for all these years? Hey maybe the generations aren't so different.

 

Gov policy depends on voters.
If landlords are greedy scammers, then that will be gov policy.
If whingy whiners want to ban words, then that is gov policy.
If people want to identify as monkeys, then that will be gov policy.

Actually Boomers and X generally paid mch less for lifestyle, there was much less available and they spent more time working. And a lot less traveling.

 

Have you got any stats to back up your assertions? They may have paid "less" but did they spend a higher percentage or more money relatively?

Your thoughts and feelings don't seem to be backed up by research.

 

I suspect rentvesting is becoming more popular due to 1) not being able to afford where you want to live, and 2) increased geographical mobility. I own property and will probably rent again in future. Allows me to live where I want, according to my lifestyle at the time, without the massive entry and exit costs.

 

If the trend had been rising, it could also be due to high migration numbers. New migrants tend to rent for a few years whilst they find their feet, save enough for a deposit etc.

I don't buy the argument that millenials prefer to rent.

 

I think it's lack of choice vs preference.

Anyway, these threads always descend into a boomer vs millennial debate but it should be noted that the youngest millennials are in their late 20s and 30s. So, you raised them.

Gen Y / millennials (25 - 40) = children of boomers.
Gen Z / zoomers (under 25) = children of Gen X.

 

Most of my Gen X friends and family (aside from the odd one with no financial management skills) either own or are saving to own a home.

 

Australia doesn't have much protection for renters re. tenure, a landlord can kick a tenant out whenever they want after à 6-12 month lease is up or pop the rent up a bit, can't do that in most of Europe where renting is more secure with much longer leases sometimes indefinite, and rental increases are controlled. Unless that changes renting is not as attractive in Australia.

 

I remember your huge bulleted list on this. It should be stickied somewhere.

 

Long term renting needs a few things australia doesnt really have. More state and institutional landlords, longer term leases, and higher pensions.

 

Whats long term leases? 2-5 years???

 

inflation type rent rises until death, probably.