For 26-year-old renter Nick Stoll, the thought of owning his home is a complete “fantasy”.

“On my wages, I’m never going to own a home until 40 years later,” Mr Stoll said.

“I don’t know anyone in Sydney buying a house under 30 without parental help.”

According to the latest Household Income and Labour Dynamics in Australia (HILDA) survey from the University of Melbourne, the proportion of Australian renters becoming homeowners has taken a dive in the past 15 years – especially for those aged between 18 and 24.

Starting in 2001, the HILDA survey follows 17,000 households each year, collecting information about income, employment, health, education and relationships.

Between 2013 and 2016, just 7.6 per cent of renters aged between 18 to 24 transitioned into home ownership from one year to the next, down from 13.5 per cent between 2001 and 2004.

While young people recorded the most marked drop, the survey found the jump from renting to owning a home was becoming less common among all age groups.

Lead researcher Roger Wilkins said there was a “real connection” between house prices and rates of home ownership. But he added that higher rates of participation in higher education could also explain why fewer young people had purchased property.

“There’s also been an overall trend that people just spend a few more years to enjoy their youth [and] travel the world, so people are marrying later and having kids later,” he said.

These findings back up data released by the Australian Bureau of Statistics last year which showed home ownership was at its lowest rate on record.

According to the HILDA survey, people aged 25 to 34 were the most likely to pay rent, while those aged 55 and older were the least likely.

Research fellow at UNSW’s City Futures Research Centre Dr Chris Martin said renters becoming a growing demographic was consistent with the long-term trends of housing stress in Australia.

“The private rental sector is growing and it’s the only growing part of the housing system,” he said.

“High-income households can spend more on their housing, they can out-compete [those on a] lower income and younger households who do it very tough.”

This phenomenon is evident in the figures, according to Dr Martin. He said young households were not only priced out of home ownership but also private rentals, with more opting to live with their parents for longer.

The survey found 18 to 24-year-olds were the only age group that experienced a slight decline in renting, from 36.6 per cent to 34.5 per cent, which was driven down by young people remaining in the family home.

The survey also found a quarter of private renters moved every year, and almost half moved within three years.

Morgana Russell, 27, from Melbourne estimates she has moved on average once per year since she began renting eight years ago.

“It’s pretty depressing,” Ms Russell said. “One was about a badly leaking roof and it turned out the owners had plans to demolish the home. Another was for asbestos in the house.”

“I’ve had to move further and further away from the city as it’s gotten more expensive.”

According to the HILDA survey, renters were far more likely to be under housing or financial stress than homeowners.

Tenants Union of NSW senior policy offer Leo Patterson Ross said governments needed to act in the face of decreasing rates of home ownership among renters.

“The main reform we need is increasing the stability of rentals and acknowledging the need for people to rent their house for a lot longer by getting rid of no-grounds evictions and having a home they can rely on,” Mr Patterson Ross said.

Tenants Victoria chief executive Mark O’Brien said the cost of rent impacted how often tenants had to move. He hoped the current review of the Victorian Residential Tenancies Act would improve renters’ access to long-term tenancies.

“A lot of the problems are systemic in nature and this system can be reformed,” Mr O’Brien said. “The bigger picture is affordability, especially for private renters where affordability is much worse than for any other category of housing.”

Professor Wilkins expected cooling house prices to arrest the rapid growth in renting. “It should see some rebound in home ownership but it depends on other factors as well,” he said.

“If the economy tanks and unemployment rises and so forth then that effect will outweigh the house price effect.”