New data highlights affordability pressures and stagnant ownership rates for Australian borrowers
Home ownership patterns have shifted markedly over the past decade, as price cycles, demographic change and policy settings reshape access to housing around the world.
A new analysis by home loan comparison service Compare the Market has examined where ownership is expanding – and where it is stalling – with implications for both borrowers and property investors.
The company’s global home ownership growth index scores countries out of 100, using four weighted measures: changes in home ownership over five years, current ownership levels, annual house price growth and an affordability indicator. Together, these metrics aim to show which markets are most conducive to buying a home today.
Regional differences in ownership growth
Within the European Union, countries including Poland, Romania and Latvia report high home ownership rates of 86.8%, 93.9% and 83.8% respectively, and only modest growth in recent years. Their price movements have generally been less pronounced than in some other advanced economies, helping to keep ownership more attainable, especially for first-home buyers. However, affordability still varies at a local level, requiring borrowers to assess income, price and lending conditions market by market.
These markets illustrate how steady demand, contained price growth and relatively accessible borrowing costs can support both owner-occupiers and buy-to-rent investors, without the rapid escalation seen elsewhere.
In Asia, South Korea stands out in the index, combining strong gains in ownership (84.8%) with very limited house price rises. This profile places it among the more favourable markets in which to purchase a home.
Japan offers a contrasting case: ownership rates there have been largely flat, and both price growth and market expansion are subdued, reflecting a more conservative housing market.
Markets with weaker home ownership outcomes
At the lower end of the index are countries where structural factors, economic pressures or affordability constraints make home ownership harder to achieve.
Switzerland is identified as one of the more difficult markets, with a home ownership rate of 42.82% and a five‑year change of just 0.04%. House prices rose 4.95% over the past year, while its affordability score sits at 36.94. On the index, Switzerland records an overall score of 35.34.
Germany shows a similarly constrained picture. Its home ownership rate is 47.1%, but it has experienced a five‑year decline of -7.47%. Longstanding preferences for renting, combined with affordability barriers, have limited ownership growth. House prices increased 3.81% and the country’s affordability score is 43.59. Despite only moderate price rises, Germany ranks second-lowest for home ownership growth, with an overall index score of 34.74.
Colombia also features among the weaker performers, with a home ownership rate of 36% and a five‑year fall of -8.40%. Although house prices rose by only 2.75% and affordability is scored at 48.83, broader economic pressures and falling ownership rates leave many households struggling to enter the market.
Australia’s position in the global index
Compared with many other developed markets, Australia is characterised in the index as a more challenging environment for aspiring homeowners. The home ownership rate is 65.8%, with no net growth over the past five years, signalling a period of stagnation rather than expansion.
Annual house price growth has slowed to 3.47%, which has eased some of the immediate pressure on borrowers. However, Australia’s affordability score is just 28 – one of the lowest among comparable economies – pointing to a persistent gap between household incomes and dwelling prices.
On the index’s composite measure, Australia records a score of 51.56. This places it behind a number of European and Asian markets where ownership growth and affordability are more favourable.
For many would-be buyers, the data suggest that entering the market may require extended saving periods, support from family, or consideration of alternative strategies such as buying in more affordable regions or entering as an investor first.
Implications for borrowers and investors
The index points to a widening gap between markets where ownership is broadly accessible and those where affordability continues to act as a major constraint.
Countries such as South Korea, Poland and Romania show how moderate price growth, supportive economic conditions and steady demand can underpin stable home ownership rates. By contrast, Switzerland, Germany and Colombia illustrate the effect of limited affordability, price dynamics or cultural preferences that favour renting.
Stephen Zeller (pictured right), general manager of money at Compare the Market, said the findings highlight the need to look beyond headline prices when assessing home ownership prospects. “Sustainable home ownership isn’t just about prices, as creating the right conditions for people to build stable, long-term futures is just as crucial,” he said.
“With affordability shaping where people buy, securing the right home loan is just as critical as finding the right property. Comparing home loan rates can help buyers maximise their budget and improve their chances of securing a property in competitive markets.”
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