Is the Great Australian Dream Dead? Why Housing Affordability Is Slipping Away
For generations, owning your own home has been a cornerstone of Australian identity—a symbol of success, security and self-reliance. But for many Australians today, that dream feels more like a mirage. At Renown Lending, we’ve seen firsthand how challenging the path to home ownership has become. The question we’re now facing is stark: Is the dream over—or just on hold?
A Nation of Haves and Have-Nots?
Home ownership is fast becoming the dividing line in our society. If you're already on the property ladder, you’re one of the lucky ones. But if you're still trying to take your first step, you might feel like you’re chasing a moving target. From Adelaide to Sydney, land is scarce, construction costs have ballooned, and red tape continues to strangle supply.
The statistics paint a worrying picture:
In the last 20 years, home ownership in Australia has fallen from 71% to 66%.
Among Australians aged 30 to 34, home ownership dropped from 64% in 1981 to just 49% by 2021.
This is more than a housing issue—it’s a generational shift. Without intervention, we risk cementing a permanent underclass of renters locked out of wealth creation through property.
How Did It Get This Bad?
There’s no single cause—it’s a perfect storm. Land ready for development is limited, and getting approvals is an administrative nightmare. Add in a shortage of skilled tradespeople, inflated costs for materials, and rising interest rates, and the result is predictable: homes are more expensive than ever, and rentals are harder to come by.
Even regional areas, once viewed as a refuge from city prices, are now grappling with soaring demand and worker shortages. Teachers, nurses, and tradies can’t afford to live near their jobs, leading to ripple effects across essential services and the broader economy.
What’s at Stake?
Housing is more than just a financial asset. It’s a place to build a life, raise a family, and feel secure. When people are shut out of home ownership, the social cost is immense—a sense of dislocation, diminished opportunity, and rising stress.
As a private lender, Renown Lending works with many clients who’ve been knocked back by traditional banks. We know there are still ways forward—but they require fresh thinking and real leadership.
Where to From Here?
The Housing Industry Association rightly points out that there’s no silver bullet. But there are solutions:
Build more homes. Sounds simple, but we need governments to genuinely commit to reducing planning delays and enabling development.
Address the skills shortage. Without more tradies, homes don’t get built.
Support first-time buyers with financial assistance and smarter lending pathways.
Lower taxes and fees on housing to improve affordability across the board.
This isn’t just about policy—it’s about priorities. As we approach a federal election, the time for passing the buck is over. Housing needs to become a national mission.
Why Renown Lending Believes in the Dream
At Renown Lending, we still believe in the Australian Dream. We help borrowers across Sydney, Melbourne and Adelaide who’ve been told “no” by the banks. Whether it’s first home buyers, developers or renovators, we offer tailored, real-estate secured lending solutions that get people into homes and help bring new housing stock to market.
If our political leaders take this issue seriously—and if industry and lenders continue working together—the dream doesn’t have to die.
We just need to get back to building.
