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‘We can fix it’: Housing affordability reaches worst levels yet
A $300,000 affordability gap results from rising prices, limited supply, demand-side incentives, and high rents, with forecasts predicting further price increases in major cities next year.
- Recently, Eliza Owen of Cotality found a gap of almost $300,000 between what a typical household can afford and what a typical home costs, and Owen said moving to cheaper areas no longer solves this.
- Analysts point to chronic underbuilding and elevated construction costs, noting the last few years fell short of building 230,000–240,000 homes annually, while Eliza Owen said the supply side alone is insufficient.
- For renters, Owen highlighted median capital-city households spend 31.7 per cent on rent while low-income households spend 53.8 per cent, and typical home sellers posted paper gains of just over $300,000.
- Forecasting further rises, SQM Research said property prices could grow 6 to 10 per cent next year, with Sydney rising 3 to 6 per cent and Perth 12 to 16 per cent.
- Amid that debate, analysts point to demand-side stimulus such as HomeBuilder and the 5% Deposit Scheme boosting demand, while commentators say Australia has land but lacks political will, and experts call for non-market social housing and increased Commonwealth Rent Assistance to protect lower-income households.
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Rental squeeze intensifies: Perth now Australia’s least affordable city
Despite interest rates stabilising, rental stress remains unchanged across Australia. In many capital cities, households are still handing over almost a third of their income just to keep a roof over their heads. And once again, Perth has it the worst. The nation’s least affordable capital has slipped even further — recording another four per cent drop in affordability on top of last year’s record low.
·Sydney, Australia
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Coverage Details
Total News Sources15
Leaning Left8Leaning Right1Center1Last UpdatedBias Distribution80% Left
Bias Distribution
- 80% of the sources lean Left
80% Left
L 80%
Factuality
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