Older renters lose out
The AIHW’s ‘Assitance in Housing’ report shows that most older Australians benefit greatly from home ownership but older residents spend a lot on housing.
Home ownership remains a significant financial and social resource for a large proportion of older Australians according to the Australian Institute of Health & Welfare’s (AIHW’s) ‘Housing Assistance in Australia’ report.
According to the national reference paper, 85 per cent of people over 65 own their own home, compared to just 69 per cent of all households.
With such high levels of home ownership, it’s not surprising that older people as a group spend a relatively low proportion of their income (7 per cent) on housing costs.
But housing is a huge money drainer for those of elderly Australians who rent.
Older households renting privately spend an average of 36 per cent of their gross income on housing – the highest proportion of income spent on housing costs of any group in the country.
But older people are increasingly living in private rental accommodation rather than public housing.
Between 1991 and 2001, the proportion of older Australians renting private dwellings rose from 6 per cent to 7 per cent, while the proportion in public housing fell from 5 per cent to 4 per cent.
Despite this trend, older Australians were still overrepresented in public rental housing and under represented in private rental housing in 2006.
