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Sep 22, 2011
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How is housing affordability affecting your state?

On Monday, we released the analysis ‘Australia’s broken housing system’ [linked], revealing that housing costs are not only the biggest cost to household budgets, but also the fastest rising. Housing costs have increased an average of 55% over the last six years.

How does your State fair for housing affordability?

ACT

  • Housing costs have increased 63% in Canberra over the last six years
  • It now takes 6.2 times the annual average income to afford the median house price
  • In 2001 housing was just 3.4 times the annual average income

NSW

  • Housing costs have increased 43% in Sydney over the last six years
  • It now takes 8.1 times the annual average income to afford the median house price
  • In 2001 housing was 5.6 times the annual average income

NT

  • Housing costs have increased 62% in Darwin over the last six years
  • It now takes 5.8 times the annual average income to afford the median house price
  • In 2001 housing was just 3.3 times the annual average income

QLD

  • Housing costs have increased 67% in Sydney over the last six years
  • It now takes 6.7 times the annual average income to afford the median house price
  • In 2001 housing was 4.6 times the annual average income

SA

  • Housing costs have increased 56% in Adelaide over the last six years
  • It now takes 7.4 times the annual average income to afford the median house price
  • In 2001 housing was 3.6 times the annual average income

TAS

  • Housing costs have increased 50% in Tasmania over the last six years
  • Across the State housing costs have risen 10% more than incomes
  • It now takes 6.6 times the annual average income to afford the median house price
  • In 2001 housing was just 3 times the annual average income

VIC

  • Housing costs have increased 60% in Melbourne over the last six years
  • It now takes 7.3 times the annual average income to afford the median house price
  • In 2001 housing was 4.3 times the annual average income

WA

  • Housing costs have increased 64% in Perth over the last six years
  • It now takes 7.1 times the annual average income to afford the median house price
  • In 2001 housing was 3.9 times the annual average income

In the last ten years Australian house prices have risen by 147% while incomes have risen by only 57% and in the last five years rents have risen at twice the rate of inflation.

We need the State Governments to commit to working with federal l government to solve this crisis. It’s time for a new approach, to develop a concrete plan to fix our housing system.

Do these statistics reflect the situation for you and your family in your State? I would love to hear your thoughts. You can also add your voice to this campaign by sharing your housing stress on our ‘Take Action’ page.

– Sarah Toohey

 

P.S For all the stat lovers – we calculated the state by state housing cost rises from the ABS household expenditure survey and the multiple medians come from this great report from AMP and NATSEM, as well as the income vs. house price inflation statistic.

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