In discussing owner occupation in Australia this paper attempts to explain why the level is as high as it is and poses the question of whether it is desirable. The paper starts with a brief history of owner occupation then moves on to discuss the benefits of owner occupation accruing to individuals, the individuals who benefit and the costs they bear. It proceeds to discuss the community benefits and costs flowing from owner occupation followed by consideration of the way in which owner occupation is related to citizenship, the types of dwellings owners have and the factors affecting owner occupation. The paper concludes with a discussion of the prospects for owner occupation and the policy options open to government.