Landlords in a growth industry as Australian wealth 2nd highest in world
Australian home-owning households are 9 to 13 times wealthier than their rental counterparts, according to new data released by the ABS. With a median net wealth of $737,000 for those who’ve paid off their homes and $487,000 for those still repaying the bank, the numbers dwarf rental households’ median net assets of $55,000.
The ABS National Accounts show the huge disparity, but age and household size don’t explain the gap. The average age of a renter is 41 and those paying off a mortgage are 44. The ABS says the average rental home has 1.8 adult occupants while home owners have just 2.1 adults living under the same roof.
A recent Credit Suisse report says Australians are now amongst the world’s wealthiest, with real assets per adult second only to Norway.
The ABS data also shows the growth in the business of renting an investment property. In 1960 just 2.5% of GDP was earned by renting out a dwelling, but by 2010 this had risen to 8%. Last year $99 billion of rent was paid on just under 2 million Australian homes.