Home Ownership Drops In 22 Countries Globally, except Australia

While home ownership rates are dropping around the world, Australia is bucking this global trend.

A study by Swinton Insurance has revealed that the number of people owning their homes in Australia has increased in the last 10 years.

The figures may seem surprising, as house prices in Australia have been climbing for a few years.

And with our national property markets having bottomed out earlier this year, there now seems to be a fear of missing out among buyers once again, especially in Melbourne Sydney and Brisbane.

Swinton’s research shows that the average monthly Australian salary is $4368.66 and the cost to buy one square metre of property is $6730.52, meaning you would need around 1.5 months’ salary to purchase one square metre. In comparison, the average cost of renting is $1889.35 – so one month’s salary equals around 2.5 months’ rent. With renting more affordable, the drastic increase in ownership rate is even more remarkable.

Data commissioned by CommSec in 2018 showed the average newly built Australian home (including both apartments and freestanding houses) was 186.3 sqm, 30 per cent larger than a new house built 30 years ago – making Australian homes the second largest in the world, behind the US. In actual fact, home ownership is dropping on a global scale, with 22 out of 36 developed countries – or 61% – seeing a decline in the past 10 years.

THE MOST EXPENSIVE AND CHEAPEST COUNTRIES TO BUY 1SQM

The most expensive country to buy property is the Czech Republic, where it costs three times the monthly salary of £872 to buy one square metre (£2,592). France is also costly, at 2.7x the monthly salary of £1,711 to buy a square metre (£4,651).

The cheapest country to buy a home, in relative terms, is the United States where the monthly salary is £2,525 and one square metre costs £1,791.

*source PropertyUpdate

Posted in Buy, Latest news, News on 12th December, 2019