Thursday, July 11, 2024

Month: May 2023

Homelessness Is An Entirely Solvable Problem, Just Ask Finland

Homelessness is a very simple problem that is often over-analyzed. The fact is that there is a group of people who have found themselves (for whatever reason) unable to secure a roof over their heads. Usually, they simply don’t have enough money, because rent is very high and wages are very low, meaning that even if you work full-time it’s extremely hard to afford a small apartment in many cities.

But it’s perfectly possible to simply provide a guaranteed right to housing. This is the approach Finland has taken.

They’re eradicating homelessness through the novel solution of providing housing for people. They took action, and as a result they went from having a substantial homeless population to the point where, by 2020, “practically no-one was sleeping rough on a given night in Finland.”

Read the full article in Current Affairs

Housing Affordability Is Deteriorating and There’s No End In Sight

The latest decision of the RBA to increase the cash rate by 0.25 basis points will further elevate mortgage stress and reduce borrowing capacity for homebuyers across the country.

Released today by the Bankwest Curtin Economics Centre at Curtin University, the ‘Housing Affordability in Western Australia 2023: Building for the future’ report has revealed the alarming extent to which housing affordability in WA has deteriorated in the last two years.

Private sector rents in WA increased by around 13% in the last year alone and rising interest rates have inflated mortgage payments for existing homeowners. Rising house prices, lower borrowing capacity and increased mortgage repayments have negatively affected prospective buyers.

The report shows that the mortgage delinquency rate has more than tripled for new homeowners who took out loans in 2022 compared to those with earlier loan vintages.