Owning your own home may not be a pipedream

THE Australian dream of owning your home may be alive and well, according to a new report.  

Since 2021, nearly 600,000 Australian households have become owner-occupiers, new analysis by KPMG Australia shows.

That number was sharply higher than the previous four-year period, when the number of new owner-occupiers was around 490,000.

The proportion of Queenslanders who lived in a home they owned lifted from 63.9 per cent in 2021 to 64.9 per cent in 2025. 

Meanwhile, the proportion of owner-occupiers grew from 69.2 per cent in 2021 to 69.9 in 2025 in Western Australia. 

Victoria held steady over the period with 68.7 per cent of the households owning the home they lived in, the analysis showed.

“Western Australia and Queensland offered a rare combination during the pandemic: relatively affordable homes, ultra-low borrowing costs and the flexibility for people to work from almost anywhere,” KPMG urban economist Terry Rawnsley said.

“As a result, people may have sold their homes in those states or taken advantage of cheaper housing to enter the property market when they otherwise could not have afforded to do so in somewhere like Sydney.

“The data shows affordability is redrawing the housing map.” 

The KPMG analysis combined Census and ABS housing survey statistics with rental bond data to estimate owner-occupier rates.

It showed a shift in the housing market, as ultra-low interest rates and the rise of remote working, allowed people to access a wider range of housing options.

Nationally, the proportion of owner-occupier households dropped from 66.3 per cent in 2021 to 65.9 per cent in 2025. 

That decline was mainly driven by Sydney and Regional NSW, with many younger homebuyers being locked out of the housing market, the report said.

Stripping out NSW from the national number, the owner-occupiers rate remained roughly unchanged between 2021 and 2025.

Sydneysiders led the decline in NSW, with the owner-occupier rate in the city dropping to 59.9 per cent, sharply down compared to 61.1 per cent in 2021.  

“Sydney probably has not seen ownership rates this low since the late 1950s, which shows just how far affordability has moved against households trying to buy where they live,” Rawnsley said.

“The owner-occupiers rate in Melbourne held steady as stable housing supply, particularly in Melbourne’s greenfield growth areas, was available at price points accessible to first-home buyers.”

Nationally, the owner-occupier rate in 2025 remained sharply lower than it was two decades ago, highlighting the need to continue supporting the current generation of first-home buyers. 

“In addition to boosting housing supply, leveling the playing field for first home buyers and supporting them to access home ownership sooner are really important reforms,” Rawnsley said.  

“The dream of owning a home is far from dead. Australians are adapting, relocating and working hard to get into the market and the combination of more housing supply and targeted support is creating a pathway to home ownership for more households,” Rawnsley said.