Falling homeownership a threat to retirement system

With home ownership rates falling, especially among younger and poorer cohorts, CoreLogic’s head of Australian research, Eliza Owen, has raised concern that the retirement system is unprepared for a future where a large proportion of Australians rent:

“[If you consider] policies that preserved high values of homes in order to secure Australian wealth, you have to accept that what comes with that is declining homeownership for people in lower-income cohorts,” Ms Owen told Parliament’s inquiry into housing supply and affordability.

“And if that’s the case, how do you ensure their retirement? How do you ensure their long-term financial security? A few people have used the word ‘holistic’ in the course of this inquiry. And I think that also includes things like alternatives to building wealth if you’re going to say to a cohort of people: ‘You’ll never be able to own a home’”…

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