2.5 million live in apartments: what the Census reveals about housing in Australia

While the classic image of the Australian Dream is a freestanding house in the suburbs, recently released figures from the 2021 Census show that around 10 per cent of Australians now live in apartments. 

The number of private dwellings increased by nearly one million between the 2016 and 2021 Census, with nearly one third of this increase being made up of apartments.

Out of the nearly 11 million private dwellings counted in the 2021 Census, 70 per cent were separate houses, 16 per cent were apartments, and 13 per cent were town houses.

While Census found over one million unoccupied dwellings on Census night in 2021, such as vacant holiday homes or vacant investment properties, it also counted alternative dwellings such as caravans (58,155), cabins and houseboats (29,369).

What does the Census say about home loans?

Two thirds of households were found to own their home outright or with a mortgage, which was similar to past Censuses going back to 1996.

That said, the proportion of households that own outright dropped from 40 per cent in 1996 to 30 per cent in 2021, while households that own with a mortgage increased from about a quarter of all households in 1996 to 35 per cent in 2021.

According to the Census, over the last 25 years the number of homes owned outright has increased by 10 per cent, while the number owned with a mortgage has doubled.

What does this mean for your mortgage?

If you’re looking at the growing number of apartments with plans to snap one up as a home or investment property, keep in mind that home loans for apartments may have slightly different terms and conditions than home loans for houses.

For example, some banks and mortgage lenders may not offer home loans for studio apartments of less than 40 square metres, as these properties may be harder for the lender to sell if the borrower defaults on their repayments.  

Additionally, while buying an apartment off the plan may be cheaper than buying an already-built unit, there are risks that construction could be delayed or the project could fall through, or that the finished product may not be up to the standard you expected.

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