The number of Australian households with mortgage debt that exceeds the value of their home has risen substantially over the past decade. The percentage of households with negative home equity rose from 1.7 per cent in 2001 to 2.6 per cent in 2010.Over the same period, there has been a slight decrease in the number of households that are in owner-occupied dwellings - down from 68.3 per cent to 67.2 per cent.These are among the findings of the Melbourne Institute's latest survey, "Household, Income and Labour Dynamics in Australia", which was published this week.Over the survey period, the median house price increased 86 per cent, from $259,000 to $482,000 (the report presents all dollar values in 2010 prices to remove the effect of inflation). The mean (average) house price rose 67 per cent, from $341,000 to $569,000.Mean home equity (the value of the home minus debt on the home) rose 60 per cent over this period, from $255,000 to $408,000.In other words, home debt grew at a faster rate than home value over the years between 2001 and 2010. The bulk of the increase in debt occurred between 2004 and 2010.The state with the highest level of home ownership is Victoria, where 72 per cent of households are in owner-occupied dwellings. The level is 69.9 per cent in Western Australia, 68.4 per cent in the Australian Capital Territory, 67 per cent in Tasmania and South Australia, 66 per cent in New South Wales, 63.8 per cent in Queensland and 57.8 per cent in the Northern Territory.Over the survey period, the level of home ownership fell in New South Wales, Victoria, South Australia, Tasmania and the Northern Territory.The decline in home ownership was most pronounced among people aged 35 to 54.