Australia’s housing ladder is becoming harder to climb.

The latest Household, Income and Labour Dynamics in Australia (HILDA) Survey - largely regarded as a key source of socioeconomic data outside of the ABS - paints a stark picture of the country’s housing divide, delineating between those able to find a path into home ownership and those stuck in the quicksand of rising rents, stress and uncertainty. 

One of Australia's biggest longitudinal studies, the report found housing stress reached a record high in 2024. Half of Australians aged 18 to 29 now live with their parents, up from 39 per cent in 2001. Those that do leave home are thrust into the rental market.

Beyond affordability challenges, HILDA found renters are more likely to experience housing stress, report lower housing satisfaction and feel their housing falls short of their needs compared with homeowners. 

Taken together, the findings point to a broader shift in Australian life. What was once a relatively predictable progression from renting to ownership is becoming less certain for many households. For some, renting risks becoming a long-term destination rather than a stepping stone.

It’s a reality that Kamini, a single mother from Sydney, was all too familiar with. 

Housing insecurity shaped her adulthood. Since 1998, she had lived in 23 different homes, often in social housing, and her son attended 10 different schools. At one point, she fled domestic violence and stayed in a homelessness refuge. 

The turning point came when Kamini connected with Head Start Homes, a not-for-profit organisation that works with Australians who have been locked out of traditional pathways to home ownership by helping build savings habits, financial skills and home ownership readiness. 

She followed a structured savings plan, worked towards securing stable employment and gradually built the foundation needed to purchase a home.

In April 2024, her property in Parramatta settled.

The first home she had ever owned gave Kamini a feeling she hadn't experienced in a long time.

"Knowing the walls that surround me are my walls... It means I can wake up with peace and go to sleep with peace" she says.

Kamini is one of more than 100 people supported through the Westpac and Head Start Homes partnership since 2017. 

It offers several initiatives to help with home ownership, such as supporting with savings plans and acting as guarantor on home loans for eligible participants.  

“At Westpac, we believe everyone deserves a fair shot at owning their own home,” says Carolyn McCann, Chief Executive, Consumer at Westpac.  

“By working with Head Start Homes, we’re helping to break down barriers and provide practical support to those who need it most,” she says.

With the partnership now extended for a further three years until 2029, even more Australian families, single parents, First Nations Peoples and people living in social housing will be able to access practical pathways to safe and stable homes.