4130.0 - Housing Occupancy and Costs, 2009-10  
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FEATURE ARTICLE: FIRST HOME BUYERS IN AUSTRALIA


INTRODUCTION

Home ownership is a widely held aspiration in Australia, providing security of tenure and long-term economic benefits to home owners. Housing is also very significant in the national economy in terms of investment levels, building activity and employment.

Australia has one of the highest levels of home ownership in the world. Results from the Census of Population and Housing show that home ownership levels have changed little over the past 40 years and were at 70% in 2006 (see table 1). Small fluctuations in measured home ownership rates derived from census data in part reflect methodological differences from Census to Census.

1. ALL OCCUPIED PRIVATE DWELLINGS, By tenure type

Owner without a mortgage
Owner with a mortgage
All owner occupied private dwellings
Renter
Other Tenure
Total(a)
Proportion of owner occupied private dwellings
Year
`000
`000
`000
`000
`000
`000
%

1966(b)
na
na
2 232
835
60
3 127
71.4
1971(b)
na
na
2 469
1 001
119
3 589
(c)68.8
1976
1 306
1 438
(d)2 762
1 045
232
4 039
(e)68.4
1981
1 549
1 543
(d)3 179
1 164
191
4 534
70.1
1986
1 982
1 604
3 586
1 334
174
5 095
70.4
1991
2 362
1 561
3 923
1 561
210
5 694
68.9
1996
2 658
(f)1 656
4 314
1 866
68
6 248
69.0
2001
2 811
(f)1 872
4 683
1 953
101
6 737
69.5
2006
2 478
(f)2 448
4 926
2 064
66
7 056
69.8

na not available
(a) Excludes not stated.
(b) Separate figures for owners without a mortgage and owners with a mortgage are not available for these years.
(c) Following the 1967 Referendum and a subsequent change in the Indigenous question wording in the Census in 1971, the Indigenous census count increased 45%. This change made a small contribution to the decrease in the measured proportion of owner occupied private dwellings.
(d) Includes 'owner/purchaser undefined' which account for 0.4% of the total in 1976 and 1.9% in 1981. In subsequent years only the specific categories of 'owner with a mortgage' and 'owner without a mortgage' were included on Census forms, which may have resulted in some decline in measured ownership rates.
(e) Due to budgetary restraints, the ABS was unable to complete the normal processing of the data and a 50% sample was processed. The impact of this on the measured proportion of owner occupied private dwellings is not clear.
(f) Includes dwellings 'Being purchased under a rent/buy scheme'. These accounted for 0.5% of occupied private dwellings in 1996, 0.7% in 2001 and 0.2% in 2006. Note that in the 2007-08 and 2009-10 SIH this tenure type had fallen to 0.04% and 0.05% respectively. In previous years this tenure category was not separately catered for on Census forms and it is not known how households with rent/buy tenure would have responded to the questions on tenure.
Source: ABS data available on request, Census of Population and Housing.


While at any one time most people in Australia are living in owner occupied dwellings, many factors influence when and if people enter the housing market for the first time i.e. become first home buyers. For many, the decision to become a first home buyer (FHB) will reflect their life cycle stage (partnering, having children) and their capacity to finance the purchase of a dwelling and service that financial commitment. For some people, acquisition of other assets may take precedence over housing.

This article examines the characteristics of FHBs and how they have changed since the mid 1990s.


HOUSING FINANCE

During the year to June 2011, there were 90,000 housing finance commitments to first home buyers, the second lowest annual rate since data collection began in July 1991 (see graph 2). The banks' standard variable interest rate for housing loans rose from 5.8% in June 2009 to 7.8% in June 2011 (see graph 3) and the government boost to the First Home Owner Grant, introduced in October 2008 to provide additional incentives for people to enter the housing market, ended in December 2009. The rise in interest rates and the end of the First Home Owner's Boost are likely to have caused the decline in FHB decisions during this period.

2. FHB finance commitments
Graph: 2. FHB finance commitments


3. Home loan interest rates, Standard variable rate (a)
Graph: 3. Home loan interest rates, Standard variable rate (a)



FHB WITHOUT A MORTGAGE

In the ABS Survey of Income and Housing (SIH), a FHB is defined as a household in which the reference person for that household (or their co-resident partner) bought the dwelling in which they reside in the three years prior to being interviewed, and neither that reference person nor their co-resident partner had owned a home previously.

In the 2009-10 SIH, 429,000 Australian households had purchased their first home in the 3 years prior to interview, an increase in the number since 2007-08 (318,000). Between 2007-08 and 2009-10 the proportion of FHBs without a mortgage remained stable, with 6.9% of FHBs owning their home without a mortgage at the time of the interview (table 4).

4. FHB households with and without a mortgage

FHB without a mortgage
FHB with a mortgage
All FHB households
Proportion of FHBs with a mortgage
'000
'000
'000
%

1995-96
68.6
318.2
386.8
82.3
1996-97
45.6
329.9
375.5
87.9
1997-98
58.8
387.1
445.9
86.8
1999-00
65.9
328.3
394.2
83.3
2000-01
55.0
358.2
413.2
86.7
2002-03
38.6
384.2
422.8
90.9
2003-04
21.2
372.8
394.0
94.6
2005-06
*14.6
303.3
317.8
95.4
2007-08
*25.6
292.2
317.8
91.9
2009-10
29.5
399.5
429.0
93.1

* estimate has a relative standard error of 25% to 50% and should be used with caution
Source: ABS data available on request, Survey of Income and Housing.
Note: Survey not run in 1998-99, 2001-02, 2004-05, 2006-07 or 2008-09.



FHB WITH A MORTGAGE

The remainder of this article focuses on FHBs with a mortgage. Most of the data referred to is included in tables 12 to 13 at the end of this article.

Most FHBs with a mortgage in 2009-10 were relatively young, with 68% having the reference person aged under 35 years. Only 8% of FHBs with a mortgage had the reference person aged 45 years or older. Between 1995-96 and 2009-10 the average age of the reference person remained between 31 and 33 years. The age distribution of the reference person in these households has changed little over this period.

Partnering often precedes home purchase, and often has the advantage of providing two incomes to meet the associated housing costs, particularly during the initial loan repayment period. Couple households made up the majority (67%) of FHBs with a mortgage in 2009-10, with just under half of these including children. A further 19% were lone person households. There has been little change in the family composition of FHBs with a mortgage since 1995-96.

In 2009-10, the majority (60%) of FHBs with a mortgage had at least two income earners, a proportion that has remained broadly unchanged since 1995-96. All but 2% of these households had someone in full or part-time employment at the time of the survey.

Nearly three quarters (73%) of reference people in FHB households with a mortgage had a non-school qualification in 2009-10, up from 58% in 1995-96. In 2009-10, 36% had a bachelor degree or higher, compared with 18% in 1995-96 and 40% in 2007-09.

In 2009-10, educational attainment was a little lower in the general population in the age group 18-44 years (a reasonable approximation to the FHB age group). In this population 68% had a non-school qualification, compared to 73% for FHBs with a mortgage.


HOME PURCHASES

On average, FHBs with a mortgage purchase less expensive homes than changeover buyers i.e. households that had previously owned another dwelling. In 2009-10 the mean value of the dwelling of FHBs with a mortgage (as estimated by the householder) was $401,000, compared to $553,000 for changeover buyers and $531,000 for all owner households (see graph 5).

Between 1995-96 and 2009-10 the mean value of dwellings, estimated by their owners at the time of interview, was consistently substantially lower for FHBs with a mortgage than for changeover buyers. After adjustment for inflation, the mean value of dwellings for FHBs with a mortgage increased by 116% over this period (from $186,000 to $401,000), and by 90% for changeover buyers (from $291,000 to $553,000).

5. Mean estimated value of dwelling (a), By owner type
Graph: 5. Mean estimated value of dwelling (a), By owner type



Dwelling type

Although separate houses have continued to be the most favoured form of housing in Australia, there has been a shift among FHBs with a mortgage towards medium and high density housing (which includes semi-detached houses, terrace houses, townhouses, flats, units and apartments). In 2009-10, 26% of FHBs with a mortgage occupied medium or high density housing, up from 15% in 1995-96. In 2009-10, 21% of all households in Australia occupied medium or high density housing, up from 20% in 1995-96 (table 1).

In 2009-10, FHBs with a mortgage lived in smaller dwellings, on average (3.1 bedrooms), than either changeover buyers (3.4 bedrooms) or all owner households (3.3 bedrooms). This, along with the differences in house prices, indicates that FHBs with a mortgage occupy different segments of the housing market compared to changeover buyers.

FHBs with a mortgage were more likely to purchase new homes in 2009-10 than they were in 2007-08. Over this period, the proportion of FHBs with a mortgage buying new homes, as opposed to established homes, rose from 9% to 18%. The shift towards new dwellings, rather than established dwellings, may reflect the availability of housing stock as well as the availability of the First Home Owner's Boost to provide additional incentives for FHBs to buy new dwellings.


Housing loans

Generally FHBs borrow less money, on average, than non-first home buyers (graph 6). In June 2011, the average amount borrowed by FHBs with a mortgage was $275,000 (in 2009-10 dollars), while the average amount borrowed by non-first home buyers with a mortgage was $305,000 (in 2009-10 dollars).

In real terms, the average size of loans taken out by FHBs with a mortgage rose by $154,000 (or 127%) since June 1993, mainly reflecting the rise in dwelling values over this period.

6. Average loan size (a), Purchase of owner occupied dwellings with a mortgage
Graph: 6.  Average loan size (a), Purchase of owner occupied dwellings with a mortgage



HOUSEHOLD ECONOMIC RESOURCES

The capacity of a household to purchase a home and to service the ongoing costs of a home loan, together with other household costs, is largely determined by its access to economic resources, notably the incomes and wealth of its members.


Income

FHBs with a mortgage tend to have higher than average household incomes. In 2009-10, they had an average weekly gross income of $2,006, 19% higher than the average for all households. Just under two thirds (61%) of people in FHB households with a mortgage were in the top two quintiles (40%) of equivalised disposable household income in 2009-10 (graph 7). Only 22% were in the bottom two quintiles (40%).

Over the period from 1995-96, the distribution of equivalised disposable household income of FHBs with a mortgage remained broadly unchanged. The proportion of people from FHB households with a mortgage who were in the bottom three equivalised disposable income quintiles has remained unchanged between 1995-96 and 2009-10 at 39%.

7. Income Distribution, FHBs with a mortgage - 2009-10
Graph: 7.  Income Distribution, FHBs with a mortgage—2009–10


Between 2003-04 and 2009-10 the average real disposable income of people living in FHB households with a mortgage increased by 24%, slightly less than the average increase for people living in all households (up 28% over the same period), but greater than the 18% for those living in what are described as 'low income households' i.e. those in the second and third equivalised disposable income deciles.


Home equity

For many FHBs with a mortgage, the equity accumulated in their home represents the major part of their household wealth. Equity is measured as the value of the dwelling less the reported value of any outstanding loans secured against the dwelling. In 2009-10, FHBs with a mortgage had a mean dwelling equity of $120,000. Since 1995-96, the real mean dwelling equity of FHBs with a mortgage has increased by 78% (graph 8).

The average amount of principal owed (mortgage outstanding) on the homes of FHBs with a mortgage was $282,000 in 2009-10, an increase of 138% in real terms since 1995-96. The faster rate of increase in the principal outstanding on FHB homes owned with a mortgage reflects the increases in house prices and therefore the mortgages taken out to acquire them, although some of the increased loan amounts may reflect borrowing for other, subsidiary purposes, as well as dwelling acquisition.

8. Mean mortgage outstanding and mean equity in dwelling (a) (b), FHBs with a mortgage
Graph: 8. Mean mortgage outstanding and mean equity in dwelling (a) (b), FHBs with a mortgage



Housing costs

In this article housing costs for owners with a mortgage refer to rate payments and mortgage or unsecured loan payments, if the initial purpose of the loan was primarily to buy, add to or alter the dwelling. Additional housing costs incurred by owners such as repairs, maintenance and dwelling insurance was collected in the 2009-10 SIH.

In 2009-10 average weekly housing costs of FHBs with a mortgage were $491, or 24% of gross household income. Between 2007-08 and 2009-10, average housing costs dropped by $47 per week (or 9% from $538 to $491) for FHBs (graph 9).

9. Average weekly housing costs (a), FHBs with a mortgage
Graph: 9.  Average weekly housing costs (a), FHBs with a mortgage


The interest component of mortgage repayments for FHBs with a mortgage was the largest part of their weekly housing costs. In 2009-10, interest on the loan accounted for almost three quarters (73%) of the housing costs of FHBs with a mortgage, compared to 74% in 2007-08, 70% in 2005-06, and 64% in 2003-04. For changeover buyers with a mortgage, the interest on the loan in 2009-10 accounted for 74% of the housing costs.


Disposable income less housing costs

The income available to FHBs with a mortgage to support other household consumption, after deducting housing costs from their disposable income, provides a further indication of their economic circumstances.

In 2009-10 the average disposable household income, less housing costs, was $1,142 per week for FHBs with a mortgage. In real terms, this has risen 62% from $706 per week in 1995-96 (graph 10).

10. Mean weekly disposable income, housing costs and disposable income less housing costs (a), FHBs with a mortgage
Graph: 10.  Mean weekly disposable income, housing costs and disposable income less housing costs (a), FHBs with a mortgage


The principal component of mortgage repayments can be considered to be a form of saving rather than a recurrent housing cost. In 2009-10 the average principal component was $132 per week for FHBs with a mortgage. Excluding this from the measure of housing costs would result in an average disposable income net of housing costs of $1,274 per week in 2009-10.


Lower income households

Households with low or moderate incomes and limited reserves of wealth may have difficulty obtaining finance or meeting the ongoing costs of owning a home with a mortgage, particularly in periods when house prices are rising quickly.

In this publication 'lower income households' have been defined as those containing the 30% of people with equivalised disposable household income between the 10th and 40th percentiles. While the majority of FHBs with a mortgage have higher than average incomes, 18% of FHBs with a mortgage were from lower income households.

In 2009-10 the average age of the reference person in lower income FHB households with a mortgage was 34 years, compared to 32 years for other FHB households with a mortgage (see table 13 at the end of this article). They were less likely to be under 35 years of age than other FHB households (60% compared with 70%) and more likely to have dependent children (67% compared with 29%).

Lower income FHBs with a mortgage reported lower average dwelling values than other FHBs with a mortgage ($382,000 compared with $406,000) and lower weekly housing costs ($394 compared with $512).

Despite lower housing costs, lower income FHBs with a mortgage, on average, spend a greater proportion of their income on housing costs than other FHBs with a mortgage (38% compared to 23%). More than two-thirds (69%) of lower income FHBs with a mortgage spend more than 30% of their gross income on housing costs (see graph 11).

To varying extents, householder preferences may influence how much FHBs with a mortgage spend on housing costs. Some households may choose to live in an area with high housing costs because it is close to their place of employment. Others may choose to make higher mortgage repayments now, in order to pay off a mortgage faster, as a form of investment. However these options may be less available to lower income households.

11. Proportion of FHB with a mortgage who spend more than 30% of gross income in housing costs
Graph: 11. Proportion of FHB with a mortgage who spend more than 30% of gross income in housing costs



PREVIOUS LIVING ARRANGEMENTS

Previous tenure and landlord type

From the 2007-08 SIH results, the path into home ownership for the majority (63%) of FHBs with a mortgage was from a dwelling rented from a private landlord. However, almost one in five (18%) FHBs with a mortgage lived with their parents (or other relatives) prior to purchasing their own home (graph 12).

12. Reference person's tenure and landlord type of previous dwelling, FHBs with a mortgage - 2007-08
Graph: 12. Reference person's tenure and landlord type of previous dwelling, FHBs with a mortgage — 2007–08



Location of previous dwelling

In selecting their new home, the majority (51%) of FHBs in 2007-08 were most likely to choose a dwelling in the same suburb, town or locality as their previous dwelling. Only 2% of FHBs with a mortgage in 2007-08 reported that their previous dwelling was in a different state or territory.


SATISFACTION WITH CURRENT DWELLING

In 2007-08, FHBs with a mortgage reported high levels of satisfaction with their current dwelling, with 89% reporting being either satisfied or very satisfied. This high level of satisfaction is only slightly lower than the levels reported by changeover buyers (92%) and all owner households (91%). Despite the generally high levels of satisfaction, over one in ten (11%) FHBs with a mortgage reported that they were likely to move home within the twelve months after being interviewed.


FURTHER INFORMATION

Microdata records in the Confidentialised Unit Record Files (CURFs) released by ABS from the SIH are available for analysis and include fields for first home buyers and changeover buyers.

A full range of up-to-date information about the availability of ABS CURFs and about applying for access to CURFs is available via the ABS web site <http://www.abs.gov.au> (see Services, ABS Microdata). Inquiries to the ABS Microdata Access Strategies Section can be emailed to: microdata.access@abs.gov.au, or phone (02) 6252 7714.

12. First home buyers with a mortgage, Selected household characteristics, 1995-96 to 2009-10

1995-96
1996-97
1997-98
1999-00
2000-01
2002-03
2003-04
2005-06
2007-08
2009-10

Proportion of households with characteristic

Age of reference person
15 to 24 %
9.6
12.6
9.2
9.5
10.5
12.2
10.0
14.7
12.3
11.1
25 to 34 %
61.4
56.7
61.5
57.2
65.0
52.9
59.7
53.6
54.4
57.0
35 to 44 %
23.4
22.4
22.0
24.8
19.0
25.6
23.2
21.7
26.7
24.0
45 to 54 %
*4.2
6.1
5.1
7.5
*4.8
7.6
4.4
7.6
*5.2
7.0
44 to 64 %
**0.9
*2.2
*2.1
**1.0
**0.7
*1.7
*2.3
*1.6
**1.2
*0.8
65 and over %
**0.5
-
-
-
-
**0.1
**0.4
**0.8
**0.3
**0.1
Total %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Family composition of household
One family households
Couple family with dependent children %
36.6
36.2
34.7
35.1
30.5
33.6
31.4
34.6
32.4
32.7
One parent family with dependent children %
*3.4
*2.7
3.2
*4.1
*4.0
4.4
4.7
*2.7
*4.0
3.3
Couple only %
32.0
31.0
34.1
30.8
34.5
29.4
34.6
33.5
32.6
34.0
Other one family households %
*3.9
*4.4
*5.1
*4.7
6.1
5.7
4.0
*5.3
*4.0
7.6
Multiple family households %
-
**1.8
*2.4
**1.8
**0.2
*1.0
**0.3
**0.6
**1.6
**1.2
Non-family households
Lone person %
17.4
18.4
14.9
14.8
16.9
20.2
20.0
20.0
22.1
18.5
Group households %
6.8
5.5
*5.6
8.7
7.8
5.7
5.1
*3.3
*3.4
2.7
Total %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Number of employed persons
None %
5.6
5.1
*4.4
*3.5
*4.2
4.7
*3.9
*1.7
*2.8
*2.2
One %
36.0
39.6
36.5
37.4
38.2
41.0
37.8
40.9
39.4
37.5
Two %
54.6
50.1
54.7
51.4
52.6
50.4
54.2
54.1
51.9
56.3
Three or more %
*3.8
*5.2
*4.4
*7.7
*5.0
*3.9
4.1
*3.4
*6.0
*4.0
Total %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Level of highest non-school qualification (of reference person)
Bachelor degree or higher %
18.0
19.0
17.4
19.9
23.7
22.4
30.2
33.1
40.4
36.1
Advanced diploma and diploma or below %
39.6
40.3
37.1
40.4
38.2
36.5
37.8
36.8
33.8
36.6
No non-school qualification %
42.4
40.8
45.5
39.4
37.5
38.9
30.8
29.0
25.3
26.0
Total(a) %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Dwelling structure
Separate house %
84.7
82.7
82.5
81.9
80.6
77.0
82.8
72.3
70.9
74.2
Semi detached/row or terrace house/townhouse %
7.9
10.0
*6.4
10.7
8.3
11.1
9.8
15.2
10.1
13.1
Flat/unit/apartment %
7.4
7.3
10.8
*7.1
*10.6
11.6
7.4
11.5
19.0
12.7
Total(b) %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
New or established dwelling
New dwelling %
22.7
23.1
17.4
15.5
19.5
21.3
17.6
13.5
8.9
18.0
Established dwelling %
77.3
76.9
82.6
84.5
80.5
78.7
82.4
86.5
91.1
82.0
Total %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Number of bedrooms in dwelling
One bedroom %
*2.2
*1.8
**1.0
*1.4
*1.8
*1.6
*2.5
*3.0
*6.3
*2.6
Two bedrooms %
22.7
21.2
22.9
21.9
21.0
21.8
21.4
22.5
26.1
19.1
Three bedrooms %
61.5
58.4
57.7
56.2
57.1
54.2
57.4
53.8
50.3
50.0
Four bedrooms %
13.0
17.0
16.4
19.0
18.1
20.6
16.5
19.1
16.3
25.8
Five or more bedrooms %
**0.7
*1.6
*1.9
**1.5
*2.0
*1.8
*2.1
*1.5
**1.0
*2.5
Total(c) %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Equivalised disposable household income(d)(e)
Lowest Quintile %
7.2
10.8
9.1
9.8
8.5
7.7
7.5
6.8
*5.0
8.0
Second Quintile %
13.3
9.5
9.0
9.8
9.5
15.1
9.5
10.3
11.5
13.8
Third Quintile %
18.3
16.3
21.3
17.4
17.5
21.0
18.9
22.3
19.7
16.8
Fourth Quintile %
24.4
21.3
25.6
25.4
27.2
23.3
29.1
27.9
26.9
26.7
Highest Quintile %
36.7
42.1
34.9
37.6
37.3
32.9
35.0
32.7
36.9
34.6
Total %
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Second and third deciles %
9.8
9.4
7.6
10.2
7.5
8.4
7.5
8.9
6.4
10.4


Average age of reference person years
32
32
32
33
31
33
33
32
32
32
Average number of persons in household no.
2.60
2.66
2.62
2.70
2.51
2.58
2.48
2.50
2.46
2.58
Average number of bedrooms in dwelling no.
2.88
2.95
2.96
2.97
2.98
2.99
2.95
2.94
2.80
3.07
Mean value of dwelling (in 2009-10 dollars)(f) $'000
186
200
205
247
232
286
316
348
375
401
Mean amount of mortgage outstanding (in 2009-10 dollars)(f) $'000
118
127
127
156
150
177
195
239
265
282
Mean equity in dwelling (in 2009-10 dollars)(f) $'000
67
73
78
91
82
109
121
109
111
120
Mean gross weekly household income (in 2009-10 dollars)(e)(f) $
1 307
1 451
1 424
1 615
1 572
1 503
1 670
1 775
2 099
2 006
Mean disposable weekly household income (in 2009-10 dollars)(e)(f) $
1 042
1 129
1 129
1 236
1 232
1 181
1 317
1 398
1 681
1 633
Mean weekly housing costs (in 2009-10 dollars)(f) $
336
329
313
330
340
341
412
466
538
491
Mean disposable weekly household income less housing costs (in 2009-10 dollars)(e)(f) $
706
800
816
906
893
840
905
932
1 142
1 142
Housing costs as a proportion of gross income(e)(g) %
26
23
22
20
22
23
25
26
26
24
Estimated number of households '000
318.2
329.9
387.1
328.3
358.2
384.2
372.8
303.3
292.2
399.5
Number of households in sample no.
331
362
373
299
318
507
547
363
341
679

* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
- nil or rounded to zero (including null cells)
(a) Includes level not determined.
(b) Includes other dwelling types.
(c) Includes bed-sits and dwellings with no bedrooms.
(d) See paragraphs 40 to 48 of the explanatory notes.
(e) Estimates presented for 2007-08 and 2009-10 are not directly comparable with estimates for previous cycles due to the improvements made to measuring income introduced in the 2007-08 cycle. Estimates for 2003-04 and 2005-06 have been recompiled to reflect the new treatments of income, however not all new components introduced in 2007-08 are available for earlier cycles.
(f) Adjusted for changes in the Consumer Price Index.
(g) Excludes households with nil or negative total income.

13. First home buyers with a mortgage, 2009-10

Lower income FHBs with a mortgage(a)
Other FHBs with a mortgage
All FHBs with a mortgage

Proportion of households with characteristic

Age group of reference person
15 to 24 %
14.8
10.3
11.1
25 to 34 %
45.5
59.5
57.0
35 to 44 %
25.7
23.6
24.0
45 to 54 %
*11.3
6.0
7.0
44 to 64 %
**2.0
**0.6
*0.8
65 and over %
**0.7
-
**0.1
Total %
100.0
100.0
100.0
Family composition of household
One family households
Couple family with dependent children %
57.7
27.2
32.7
One parent family with dependent children %
*9.5
*2.0
3.3
Couple only %
17.8
37.5
34.0
Other one family households %
**3.0
8.6
7.6
Multiple family households %
**2.2
**1.0
**1.2
Non-family households
Lone person %
*8.6
20.7
18.5
Group households %
**1.3
*3.0
2.7
Total %
100.0
100.0
100.0
Number of employed persons
None %
*4.9
*1.6
*2.2
One %
58.0
33.0
37.5
Two %
35.4
60.9
56.3
Three or more %
**1.7
*4.5
*4.0
Total %
100.0
100.0
100.0
Housing costs as a proportion of gross income(b)
25% or less %
*15.9
53.4
46.6
More than 25% to 30% %
*15.6
14.4
14.6
More than 30% to 50% %
39.8
25.6
28.2
More than 50% %
28.7
6.6
10.6
Total %
100.0
100.0
100.0


Average age of reference person years
34
32
32
Average number of persons in household no.
3.40
2.40
2.60
Mean value of dwelling $'000
382
406
401
Mean amount of mortgage outstanding $'000
252
289
282
Mean equity in dwelling $'000
130
117
120
Mean gross weekly household income $
1 036
2 220
2 006
Mean disposable weekly household income $
940
1 785
1 633
Mean weekly housing costs $
394
512
491
Mean disposable weekly household income less housing costs $
546
1 274
1 142
Housing costs as a proportion of gross income %
38
23
24
Estimated number of households '000
72.1
327.4
399.5
Number of households in sample no.
127
552
679

* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
- nil or rounded to zero (including null cells)
(a) Lower income households are those containing the 30% of people with equivalised disposable household income between the 10th and 40th percentiles.
(b) Excludes households with nil or negative total income.