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An exploration of female home ownership patterns in Australia. 18 th European Real Estate Society Conference Eindhoven, 15 th – 18 th June 2011. Valerie Kupke & Peter Rossini Centre for Regulation and Market Analysis University of South Australia & Sharon Yam - PowerPoint PPT Presentation
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An exploration of female home ownership patterns in Australia
18th European Real Estate Society Conference
Eindhoven, 15th – 18th June 2011
Valerie Kupke & Peter Rossini Centre for Regulation and Market Analysis
University of South Australia&
Sharon YamCentre for Accounting, Governance & Sustainability
University of South Australia
Slide 2
More women looking to buy a home
• In Australia most important factor contributing to housing demand is the growth in the number of households
• Lone person and single parent households projected to grow fastest - both households significantly over represented by female headship
• Women associated with longer life spans, increasing rates of marriage break down, higher levels of workforce participation and increasing levels of wealth
• Therefore significantly more women will be looking to purchase homes on their own
• Yet studies on women and housing are rare
Slide 3
Benefits of home ownership
• Australia’s welfare and housing polices are predicated on the perceived merits of home ownership
• Welfare benefits, both during employment and on retirement, based on household investment being extended over time through home ownership
• For women in Australia home ownership will be an important determinant of their ability to secure adequate living standards in old age
Slide 4
Challenges to purchase
• Entrenched lower rates of pay - on average 17 % less than men which sets them up for a life time of financial inequality worth up to $1 million over their lifetime, concentrations in lower paid occupations
• Women less wealth, less choice about their lifestyles & significantly lower superannuation than men
• Career breaks - preoccupation with mother and carer roles, childcare costs and availability
• Conservative attitude of lenders and agents
Slide 5
Preliminary analysis
• First stage - this paper presents a preliminary analysis of key characteristics and changes over time of female purchasers including first home buyers in Australia for two time periods, 1998 and 2008
• Using national survey data collected by the Australian Bureau of Statistics (ABS)
• All of the results reported have been weighted using an ABS derived weighting factor
• Sex of household reference person identified in the survey & used to indicate household headship – defined as significant decision maker in the household
• Second stage of the research will be to identify the propensity to purchase by female headed households.
Slide 6
Initial questions
Initial questions•Do female home owners face greater affordability problems?•Are female home ownership rate over or under represented in certain household types?•Is there significant variation in female home ownership rates between city and country?•Do female purchasers pay more for certain dwelling types?
Slide 7
Period of house price & rental increase
20
21
22
23
24
25
26
50
70
90
110
130
150
170
190
210
230
250
Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
% In
com
e o
n R
en
t
HIA
Aff
ord
abili
ty I
nd
ex
HIA First Home Buyer Housing Affordability Index & Proportion of Median Income on Rent 1998 - 2008
HIA First Home Buyer Housing Affordability Index
Proportion of Median Weekly Family Income spent on RentHousing less
affordable
Slide 8
Home ownership rates in Australia falling
Headship Female - 1998 Female - 2008 Male - 1998 Male - 2008Owner without a mortgage
40.93% 34.59% 38.58% 32.10%
Owner with a mortgage 25.14% 29.78% 34.36% 38.60%
Home ownership rate
66.06% 64.37% 72.93% 70.70%
Renter30.98% 33.27% 24.96% 27.48%
Other2.95% 2.35% 2.11% 1.82%
Home Ownership Rate
Slide 9
Female households face affordability problems
Sex of HH reference Mean t Sig. (2-tailed) N
Male $1,903 4897501
Female $1,271 3140152
Male $397,809 635526
Female $365,656 354063
Male $46,263 178889
Female $43,824 89613
Male $191,604 1558483
Female $167,736 764982
Male $429 1530965
Female $379 745643
Total weekly income all sources (corrected)
.000
.000
.000
.000
.000
529.659
Purchase price of dwelling (for dwellings purchased/built in the previous 3 years)
Size of home deposit
Amount owing on mortgages to purchase/build - HH
Weekly mortgage repayments to purchase/build - HH
56.075
11.016
122.186
98.371
Slide 10
Female home ownership over represented by certain household types
Slide 11
Yet female buyers may be outbidding males for certain dwelling types
Slide 12
Many female FHBs are single income households
Slide 13
Separate dwellings still popular with FHBs
Slide 14
Most Female FHBs buy in the city
New South Wales Victoria Queensland
South Australia
Western Australia Tasmania
Capital city 63.0% 77.6% 47.6% 80.2% 72.8% 32.5%
Balance of State
37.0% 22.4% 52.4% 19.8% 27.2% 67.5%
Capital city 59.4% 79.8% 65.1% 78.0% 92.2% 69.6%
Balance of State
40.6% 20.2% 34.9% 22.0% 7.8% 30.4%
Male
Female
Location
First Home Buyers 2008
Slide 15
Initial answers
Initial questions•Do female home owners face greater affordability problems? YES•Are female home ownership rate over or under represented in certain household types? YES•Is there significant variation in female home ownership rates between city and country? YES•Do female purchasers pay more for certain dwelling types? YES
Slide 16
Female participation challenged
• Out of this analysis key characteristics that will need to be investigated to explain female propensity for home ownership include children, income and particularly the prices and affordability of particular dwelling types
• Any significant mismatch between the current housing stock and its pricing with what women want to, and can afford to buy, will further threaten their participation