An exploration of female home ownership patterns in Australia

1. 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 Yam Centre for Accounting, Governance & Sustainability University of South Australia

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

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

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

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.

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?

7. Period of house price & rental increase

8. Home ownership rates in Australia falling

9. Female households face affordability problems

10. Female home ownership over represented by certain household types

11. Yet female buyers may be outbidding males for certain dwelling types

12. Many female FHBs are single income households

13. Separate dwellings still popular with FHBs

14. Most Female FHBs buy in the city

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

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