The other day I had a guest post from my friend Simon Mongey, featuring some interesting charts he made using ABS Confidentialised Unit Record File (CURF) data . He’s sent me another couple of interesting charts on housing, comparing 1986 data (dashed line) from the Income Distribution Survey with 2006 data (solid line) from the Housing Income and Expenditure Survey.

This first is this chart of homeownership rates by age cohort. You can see that homeownership rates have fallen for most age groups.

Mean Homeownership Rates: 1986 [dashed], 2006 [solid]


The second chart shows the home value to income ratio for homeowner households, in the upper half of the chart, and the owner income-renter income ratio, both by age.

Mean Housing Ratios: 1986 [dashed], 2006 [solid]

The trend in both cases is stark. Households’ housing wealth is now significantly greater, relative to income, than it was 20 years prior. It’s a fairly obvious observation, but it’s rare to see this ratio broken down by age.

In Simon’s words, the lower half of the graph shows “a quite staggering change. Home ownership in 2006 more clearly separates the rich and the poor in terms of income”.