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The landscape is changing in direct response to the challenges when entering the housing market
Over the 20-year period from 1997-97 to 2017-18, the proportion of households that rented their home from a private landlord increased to 27 per cent (up from 20 per cent)
“These [Homeowners] can be divided into two categories: those on the financial precipice struggling to pay their overbearing loans, and those with higher incomes (often pooled) who manage to cope. The former class of homeowner dreads every Reserve Bank board meeting, fearing that even a 0.25 percent interest rate rise might tip their weekly budgets irreversibly into the red”
Barring any major economic jolts, demand pressures are likely to continue over the next 40 years and supply constraints will continue. This is particularly the case in capital cities with a growing population and where an increasing proportion of Australia’s population are expected to reside
As reported by Domain, housing affordability in Australia has reached a ‘crisis’ point, with people paying up to almost 13 times their annual income to purchase a house
As reported by The SMH, housing affordability for new borrowers deteriorated on average across Australia over the year to September 2017 according to Moody’s Investors Services
As reported by The ABC, surging house prices are locking young people out of the market. A number of solutions are being explored by housing researchers and community housing providers are alternative models of affordable home ownership
We’re transitioning from a nation of ‘homeowners’ to ‘aspiring homeowners’ with 31% of Australian homes rented, up from 28% in the 2006 Census (10 years prior).