Fury over bonkers stat about Australian investment property ownership

Australians are blowing up over a revelation that lays bare just how much of the property market is dominated by a tiny sliver of the population.

Only 1% of Australian taxpayers own nearly a quarter of all property investments across the country according to the latest data. Picture NCA NewsWire / Seb Haggett

Aussies are blowing up on social media after it was revealed only one per cent of taxpayers own nearly a quarter of all investment properties.

Data from the Australian Taxation Office also revealed that a clear majority of that tiny proportion are over the age of 50 and that more than 60 per cent of renters are under 35.

It comes amid a worsening housing crisis nationally, with vacancy rates at historic lows and rental affordability at its worst level in nearly a decade. Most young Aussies believe home ownership is unattainable as they remain locked out of the market.

Michael Fotherington, the Managing Director at the Australian Housing and Urban Research Institute, told news.com.au that the figures speak to the “generational inequality” in Australia’s housing market.

“We are seeing older cohorts have ownership and investment property, and a growing number have more than one, while younger Australians are really struggling to get out of renting and into home ownership,” he said.

“House prices growth has massively outpaced wage growth and so housing is less affordable than for previous generations and we are seeing that play out with unequal distributions.”

Dr Laurence Troy, a senior lecturer in urbanism at the University of Sydney agreed — telling news.com.au that the concern “is that wealth broadly is becoming more polarised”.

He said governments need to re-examine how “they are prioritising second or third properties” Dr Troy advocated for the removal of tax concessions (negative gearing and capital gains discounts) to people buying a property for investment purposes.

A long line of people wait to inspect rental accommodation in Newtown earlier this year. Picture: Chris Pavlich

Social media users were not impressed with the new data.

One person sarcastically wrote: “We truly are the Lucky Country!”

“Ah yes, my favourite hobby: subsidising billionaires’ property portfolios. Such a fulfilling use of my taxes,” another quipped.

Others implored the government to reassess where Australia is heading.

“We’re just following other countries down the road of class/wealth divide. We drastically need to reassess our whole structure here … Try living in countries where the poor are so desperate they’ll do absolutely anything to eat?” one said.

Another asked: “How can our young people have a stake in our country if they are priced out of owning even a modest roof over their head? It’s a bloody outrage and will lead to social unrest.”

Australia’s housing crisis is worsening with vacancy rates at historic lows and rental affordability at its worst level in nearly a decade. Picture: Michael Perini

A hot topic was whether negative gearing and capital gains discounts should be wound back.

One person wrote: “I think we should be removing some/all of the incentives that turn housing into an investment scheme BUT I also think we have a problem with supply. The two things can be true.”

“Why was banning negative gearing viewed as such a negative policy when it affects so few people?” another asked.

Federal Labor failed to win two elections (2016, 2019) after making changes to negative gearing as a signature part of its housing policy.

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