Thursday, July 11, 2024

Category: Research & Reports

Australian Households On Six-Figure Incomes Can Now Only Afford 13% Of Homes

New report shows housing affordability has reached its lowest levels in decades as market continues to rebound

Rising interest rates and surging home prices have seen Australian housing affordability crash to its lowest levels in decades, according to a new report.

A household earning the median income of $105,000 can now only comfortably afford 13% of homes on the market, the lowest share since the relevant data was first collected in 1995, according to property data company PropTrack.

Three years ago, the median income household could afford almost 40% of homes – which includes houses and units – for sale.

‘Whole Housing System In Crisis’: Report Finds Australia’s Emergency Accommodation Is Often Unsafe

Study finds lack of available social housing and unaffordable private rentals mean people entering crisis accommodation have no pathways out

Emergency accommodation is often unsafe, inappropriate, of poor quality and compounds the trauma of people experiencing housing crisis, a new report has found.

The lack of available social and affordable housing coupled with inaccessible and unaffordable private rentals meant that most people who entered crisis accommodation had no meaningful pathways out.

Demand for emergency housing was also vastly outstripping supply, which meant services were resorting to acquiring unsuitable and often unsafe short-term accommodation, such as in rooming houses, hostels, motels and caravan parks.

Read the original article at The Guardian

Aussie House Prices Shift Onto Slow Track

It is commonly stated that it takes seven to ten years for property values to double.

However, according to analysis from PropTrack, the typical Australia took 15.4 years to double in value through May 2023.

PropTrack director economic research Cameron Kusher also noted that macroprudential regulations such as serviceability buffers have also reduced access to finance in recent years while keeping price growth in check.

“Rising interest rates and much higher prices, along with other economic and demographic factors, will weigh on the prospects of prices
doubling in the future”.

Kusher is right: Australian home values should rise at a much slower rate over the coming decade and beyond.

One-In-Six Australians Live In Apartments & Townhouses

  • A new report found up to 26% of Australians could be living in strata-titled properties
  • There has been a 7% growth of strata-titled properties in the last two years
  • This reflects both government policies and people’s current preferences

At least one in six Australians are living in strata titled properties such as apartments and townhouses and there’s been a 7% growth in the number of properties in the last two years, according to a new report from the University of New South Wales.

Professor Hazel Easthope, who led the research project team at UNSW, says both Australia and New Zealand have seen rapid growth in strata-titled dwellings in the last two years.

She adds strata-title property ownership began in Australia in the 1960s and has since become an important feature of the housing landscape across Australia.

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.

Australia Faces Three Housing Crises — What Are They?

A new whitepaper finds that interest rates are not the primary driver of the movement in house prices.

The ongoing housing challenges in Australia are comprised of related but separate crises, according to the latest whitepaper from PEXA Research and LongView.

Putting into perspective the drivers of house prices based on decades worth of data, the whitepaper identified three related housing crises currently happening in Australia: purchase affordability, rental affordability, and rental experience.

PEXA CEO Glenn King said containing the analysis of the housing crisis to just supply-demand arguments would only yield simple solutions that, he believes, would not be enough to work.

“What we have sought to do to is forensically analyse Australia’s unique demographic and urbanisation profile to help explain Australia’s upward trend in house prices over so many decades,” he said.

Continue reading the findings of the whitepaper at yourmortgage.com.au.

How Covid turned home ownership into the Great Australian Fever Dream

When Covid hit the Australian property market, house prices skyrocketed, people were priced out of the market, supply chain issues hit construction sites, bankruptcies and insolvencies plagued the building sector, and rather aptly, Australians’ aspirations to own a home became the Great Australian Fever Dream.

As the residential sales market raged red-hot rental vacancy rates plunged to record lows and won’t be letting up soon, and industrial real estate also never shook the superlative “record” – sounding rather like a broken record.

Australia’s rental affordability crisis reaches record low

Rental affordability has reached a record low across the country, with low-income earners the hardest hit when trying to find somewhere to live.

Australians are being hit with unsustainable rent increases, with every capital city nationwide experiencing a decline in rental affordability, according to new data insight.

The annual Rental Affordability Index* released this week revealed the low-income renters such as single parents, pensioners, and job seekers are most vulnerable and require more active and immediate support.

But it seems the rental crisis is impacting almost everyone applying for home.

* The annual rental affordability index (RAI) report is an easy to understand indicator of rental affordability relative to household incomes. It is a crucial tool for policy makers to track rental affordability trends and inform evidence-based policy responses — highlighting nuances between places and the experiences of disadvantaged households.

Download the latest report at the SGS Economics & Planning website: https://www.sgsep.com.au/projects/rental-affordability-index

Should Australia create ‘settlement cities’ for refugees? Here’s why some say yes

‘Settlement cities’ in Sydney and Melbourne are welcoming places for newly arrived refugees, according to a report, with many settling into their new communities quickly.

A report by the Edmund Rice Centre and migrant settlement agency AMES Australia found ‘settlement cities’ – referring to Local Government Areas (LGAs) which settle a large share of refugees during their first years in Australia – made them feel at home quickly.

The report describes the settlement city ‘model’ not as a formal one, but instead the qualities these LGAs have come to share that facilitate refugee resettlement.

While the model for refugee arrivals was unintended by policy makers, it was having a positive effect.

“Refugees who have this community support find it helps them settle quickly and relatively easily in their new home,” the report said.

AMES Australia chief executive Cath Scarth said the success of settlement cities reinforced the need for an expansion of them to other areas.

“Securing employment and housing, like any other Australians, are priorities for newly arrived refugees. And we can see from the research that having welcoming cities and communities can help deliver these aspirations,” she said.

Read the original article at www.sbs.com.au

Government Report Card on Community Services, Housing and Homelessness Released

The Productivity Commission has published the first set of data for its 2022 Report on Government Services (ROGS), with the goal of sharing data across jurisdictions to improve future service delivery.

A range of indicators were used to assess the performance of governments in delivering the 17 services, including equity, efficiency and effectiveness of services.

Data on community services and housing and homelessness were the first to be released, canvassing aged care, disability, child protection and youth justice.