An uptick in the number of owner-occupiers across the country has shown that the dream of homeownership remains alive, according to new analysis by KPMG Australia.
Since 2021, nearly 600,000 Australian households have become owner-occupiers, the analysis shows - considerably higher than the previous four-year period, when the number of new owner-occupiers was around 490,000.
Western Australia, Queensland and Victoria are leading the resurgence. The proportion of Queenslanders who lived in a home they own lifted from 63.9 per cent in 2021 to 64.9 per cent in 2025. Meanwhile, the proportion of owner-occupiers grew from 69.2 per cent in 2021 to 69.9 in 2025 in Western Australia. Victoria held steady over the period with 68.7 per cent of the households owning the home they lived in.
KPMG Urban Economist Terry Rawnsley said that Western Australia and Queensland offered a rare combination during the pandemic: relatively affordable homes, ultra-low borrowing costs and the flexibility for people to work from almost anywhere.
“As a result, people may have sold their homes in those states or taken advantage of cheaper housing to enter the property market when they otherwise could not have afforded to do so in somewhere like Sydney”, Rawnsley added.
“The data shows affordability is redrawing the housing map.”
The KPMG analysis combined Census and ABS housing statistics with rental bond data to estimate owner-occupier rates. It showed a shift in the housing market, as ultra-low interest rates and the rise of remote working allowed people to access a wider range of housing options.
Nationally, the proportion of owner-occupier households nationally dropped from 66.3 per cent in 2021 to 65.9 per cent in 2025. That decline was mainly driven by Sydney and regional New South Wales, with many younger homebuyers being locked out of the housing market.
But stripping out New South Wales from the national number, the owner-occupiers rate remained roughly unchanged between 2021 and 2025. Sydneysiders led the decline in New South Wales, with the owner-occupier rate in the city dropping to 59.9 per cent, down compared to 61.1 per cent in 2021.
“The owner-occupiers rate in Melbourne held steady as stable housing supply, particularly in Melbourne’s greenfield growth areas, was available at price points accessible to first-home buyers”, Rawnsley noted.
Nationally, the owner-occupier rate in 2025 remained lower than it was two decades ago, highlighting the need to continue supporting the current generation of first-home buyers.
“In addition to boosting housing supply, leveling the playing field for first home buyers and supporting their to access home ownership sooner are really important reforms”, Rawnsley said.
Still, there are positive signs for home ownership, according to recent data. The number of dwellings under construction reached a record 243,900 in the March quarter, up from 220,300 a year earlier. And despite rising interest rates, the number of loans issued to first-home buyers increased from 117,200 in the year to March 2025 to 120,500 in the year to March 2026, recent ABS data showed.
“The dream of owning a home is far from dead. Australians are adapting, relocating and working hard to get into the market, and the combination of more housing supply and targeted support is creating a pathway to home ownership for more households”, Rawnsley concluded.