Housing affordability

REIA data shows that housing affordability is the worst for 25 years aside from an 18 month period from March 1989 to September 1990.

• Australian borrowers now need 36.2% of family income to meet average loan repayments.
• ABS census data shows that owner-occupied dwellings have fallen from 69% in 1986 to 67% in 2001, and 64.8% in 2006.
• A Committee for Economic Development in Australia report (CEDA) in 2001 showed home ownership for 25-34 year olds dropped 10% from 1981 to 1996.
• A National Centre for Social and Economic Modelling (NATSEM) report in 2003 showed that home ownership for 25-39 year olds dropped from 64% in 1989 to 54% in 1999.
• First home ownership as a proportion of total homebuyers financed fell to 14% in June 2003 and 17% recently compared with an annual average of 20%.

REIA has outlined six key solutions to help improve housing affordability. Click here for more information.

Click here to read an REIA presentation, Our housing crisis: Will we be a generation of renters?

September 2007