Delivered by AHURI Professional Services
For National Shelter

AHURI was contracted by National Shelter to summarise the policy issues and potential responses for the increasing number of Australians retiring without outright home ownership.

Home ownership has long underpinned Australia’s retirement system and government policy, including how the Age Pension is set, assumes most retirees own their home. However, an increasing number of us are retiring while still renting, which has implications for financial and housing security in older age.

Over the last 20 years, however, housing affordability has worsened and homeownership rates have been falling. Renting is increasingly becoming a destination tenure, rather than a stepping stone to homeownership, especially for those on lower incomes. While currently older people still make up the majority of homeowners, young to mid-age cohorts are delaying home purchase and many are unable to afford their own home. This will have flow on effects in the coming decades, meaning they will still be renting when they retire, or they will retire with significant mortgage debt.

The size of the challenge Australia faces is immense; by 2031 an estimated 440,000 older households will be unable to find or afford suitable housing. The increasing number of Australians retiring without outright home ownership places them at risk of housing insecurity and, potentially, homelessness.