Home ownership remains the dominant housing arrangement despite high prices, borrowing challenges and intense competition in many markets. New KPMG analysis shows owner-occupiers still account for almost two-thirds of households nationally, while several states have recorded stronger ownership levels as buyers adapt their location, budgets and expectations.
The national proportion of owner-occupier households was 65.9% in 2025. That result is slightly lower than before, following declines in Sydney and Regional New South Wales, but it continues to show that most households live in a property they own rather than rent. The figure also challenges the idea that ownership has become unattainable for an entire generation.
State results reveal notable differences. Western Australia recorded the highest figure among the highlighted markets, with 69.9% of residents living in a home they own in 2025. Victoria remained steady at 68.7%, while Queensland increased to 64.9%. These proportions suggest ownership outcomes are shaped not only by income and interest rates but also by where households choose to live.
Western Australia’s result reflects the appeal of a market that has generally offered better value than Sydney and some eastern capitals. Economic activity, employment opportunities and population growth have supported demand, yet many buyers have still viewed the state as providing a more achievable entry point. That combination can help owner-occupiers purchase without facing the same price barrier found in more expensive locations.
Queensland has experienced similar forces. The state attracted substantial interstate interest during and after the pandemic, with households drawn by relative affordability, lifestyle opportunities and remote working options. Although prices have increased sharply in many areas, the 64.9% ownership rate indicates that owner-occupiers continue to form a significant share of the market.
Victoria’s steady 68.7% result shows that a comparatively high level of owner occupation can be maintained even as new purchasers face larger deposits, higher repayments and stricter affordability calculations.
KPMG Urban Economist Terry Rawnsley links the stronger state performances to pandemic-era changes. Western Australia, Queensland and Victoria were particularly attractive because they offered more affordable options and suited people who could work from almost anywhere. Remote and hybrid arrangements reduced the need for some households to live close to a central-city office, widening the locations they could consider.
That flexibility allowed buyers to exchange an expensive market for a more attainable one without necessarily sacrificing employment. A household priced out of Sydney could investigate another capital, an outer suburb or a regional centre where the same budget purchased more space. Relocation became one practical way Australians responded to deteriorating affordability.
The slight national decline nevertheless highlights the uneven nature of ownership. Sydney and Regional New South Wales recorded falls, suggesting high prices and constrained affordability are affecting the proportion of households that own. Regional areas may offer lower prices than Sydney, but rapid pandemic-era growth reduced that advantage in many locations and made entry harder for local buyers.
First-home buyer lending provides a more positive signal. KPMG’s figures show the number of loans issued to first-home buyers increasing from 117,200 to 120,500 in the year to March 2025. The rise of 3,300 loans indicates that new purchasers are still finding ways into the market even while deposits, repayments and competition remain challenging.
The pathway is still difficult. Many first-home buyers need longer saving periods, assistance or compromises on location and property type, perhaps beginning with an apartment, townhouse or home further from the city.
Rawnsley argues that the dream of ownership is far from dead. His assessment is supported by evidence that households are adapting, relocating and working hard to enter the market. He also identifies increased housing supply and targeted support as factors capable of creating a pathway for more buyers.
Additional supply is essential because ownership cannot expand sustainably when new housing fails to keep pace with population growth. Construction, infill development and a broader mix of dwelling types can create more choice. Homes located near employment, transport and services are particularly valuable because a lower purchase price alone may not make a location practical.
Targeted assistance can improve access, although its design matters. Deposit support, shared-equity arrangements and first-home buyer programs may reduce the initial barrier, but policy must balance immediate help with the longer-term task of delivering enough homes.
The national 65.9% figure includes people who bought years ago under very different conditions as well as recent purchasers. It should not be interpreted as proof that today’s entrants face the same pathway. Younger and lower-income households may still experience much greater difficulty than the headline proportion suggests.
Even so, the state increases demonstrate that housing choices can influence outcomes. Buyers willing and able to relocate may find opportunities in markets combining affordability, employment and lifestyle appeal. Remote work has expanded that option for some professionals, although it is unavailable to many occupations and is not a universal solution.
The market remains demanding, but owner-occupiers continue to dominate nationally and hold particularly strong positions in Western Australia and Victoria. Queensland’s rise, first-home buyer lending and the persistence of relocation strategies all point to continued demand for ownership.
The ambition to own has not disappeared; it is being reshaped. More households are adjusting where they buy, what they buy and how long they save. With 65.9% of households nationally owner-occupied in 2025, the majority position remains intact, while improved supply and well-targeted support will influence whether more aspiring buyers can join it.
