Housing Affordability Is A Growing Concern For Many Australian Citizens

This paper will argue how Canada's housing market is at an all time high, we are known in Vancouver for having the most expensive housing market. This expensive market is not just a Vancouver problem, it is an issue growing through out the nation and is depriving the average citizen to be able to purchase a house in there life time. There is a major issue with the state of our market and how it effects out current citizens. Issues have been arising where the average wage in Vancouver is estimated at seventy seven thousand per family house hold, yet the average costing home as reached between five hundred thousand in the

Americans across the United States search for the perfect home, location and square footage of course a great price to pay for their castle. Finding an affordable place to live is ideal, and necessary for survival in this day of age. As the years go by the cost of living increases but Americans do not receive a cost of living raise. The demand for affordable housing is on a all time high, but so is the cost of housing in the metropolitan areas across the United States. America must take care of its citizens and should provide affordable housing programs, to assist Americans to either purchase or rent a home.

This policy brief is prepared to give some insights of the housing affordability problem in Australia. In addition, the paper also suggests some approaches in which the Government should consider in tackling the issue in the Australian context. Housing affordability always

75% of my respondents that despite their desire to travel, even if they wanted to, they wouldn’t be able to afford to buy a home before they reached 30. After the second World War, Australia was overwhelmed by policies that encouraged home ownership and “families as individual units” (Sharman 1984). Since such a time when housing was booming, home ownership, particularly in Sydney, has become gradually unattainable (McNamara & Connell 2007). Since the 1980’s the percentage of young people aged 20 - 24 in Australia living in shared arrangements doubled (Burke, Pinkey & Ewing 2002), making apparent that other forms of household were inaccessible. This, I believe, reflects escalated housing prices, interest rates and land value. Furthermore, in 1980 26% of young people aged 20 - 24 in Australia lived alone, and by 2000, only 9.3% were living alone (Burke, Pinkey & Ewing 2002). Thus, despite Australia’s economic geography, shared living has since become an attractive and viable option for not only economically constrained students but also young single professionals with the promise of friendship and mutual support (economic or otherwise) (Clark & Tuffin 2015). Half of the participants had moved into a shared household with a person or people they had met before, though 60% of the group hoped that they would make new

Secondly, in the past few years, household debt has increased rapidly. On one hand, it has deep influence on each Australian. With one dollar earned, one Australian is now in debt for two dollars. Australia’s debt for property is just lower than Switzerland in the whole world and doubles as much as America. Compared with the increase of house debt, salaries of Australians have remained steady, which means people’s capacity to repay debt hasn’t improved. Australians have been recorded low wage growth. From January to March 2017 wages grew just 0.5 percent. Over the previous year, wages grew a total of 1.9 percent. From 2011-2016 wages grew just 13 percent (Anderson 2017). Considering price to income ration index, housing affordability in Australia has broadly declined in the past few years. Nevertheless, it’s very easy for anyone to get loans from the bank. People don’t need strict assessment of credit to get loans and the government has some policy like first home owners scheme to encourage house loans. As the interest rate is at the lowest point in history, any boost of the interest rate would cause hundreds of thousands of households under mortgage depress. In addition, the ease to get loans make more house demand, which eventually make the price going up. If people can only use their incomes to buy properties, the demand would definitely not as high as nowadays. The American house crash

Canada 's housing market is at an all-time high, they are known in Vancouver for having the most expensive housing market. This expensive market is not just a Vancouver problem, it is an issue growing throughout the nation and is depriving the average citizen to be able to purchase a house in their lifetime. There is a major issue with the state of the market and how it affects the current citizens. Issues have been rising where the average wage in Vancouver is estimated at seventy-one thousand per family household, according to the Vancouver Sun (2014), yet the average costing home as reached between five hundred thousand in the municipality to over one million within Vancouver, according to articles by Beth Lindsay (2015) of the Vancouver Sun, and Troy Landereville (2015) of The Maple Ridge Times.

Housing is the biggest factor in the cost of living difference. Which would explain why for many of us it is significant to our everyday lives, and daily decisions. But are housing costs out of control? With constant wages, high rates of unemployment, combined with the gap between affordable housing and the cost of living constantly increasing annually, housing cost has become inflated throughout the years. Although housing cost is simply a product of the functioning free market, along with supply and demand the implications are constantly affecting society.

Housing Affordability in Australia has become the focus point for urban planners in recent years. In particular, South East Queensland (SEQ) has experienced significant pressure as the demand for property and affordable dwellings increases and population growth in the region continues. The issue has come to the forefront in discussions for local governments in the region and there is a real need to address the problem of housing affordability. The subject of affordability is complex and is contributed to by a number of factors including the impost created by Council processes, which is the scope of the HAF-T5 Project.

The aim of the City of Sydney Affordable Rental Housing State Environmental Planning Policy Strategy (SEPP) is to protect existing affordable housing and to facilitate ¬¬¬¬¬new affordable housing in the City of Sydney to provide for social, cultural, environmental and economic sustainability. The key of this strategy is to increase the amount of affordable rental housing in the local area to very low, low and moderate income households; protect existing stock of low cost rental accommodation; encourage a diverse range of housing in the local area; and work with other inner Sydney councils to address affordable rental housing at a regional level. According to the SEPP, affordable housing is refers to housing that does not take more than 30% of a very low, low or moderate household’s income. It defines affordable housing as very low income household as

Canada 's housing market is at an all-time high, they are known in Vancouver for having the most expensive housing market. This expensive market is not just a Vancouver problem, it is an issue growing throughout the nation and is depriving the average citizen to be able to purchase a house in their lifetime. There is a major issue with the state of the market and how it affects the current citizens. Issues have been rising where the average wage in Vancouver is estimated at seventy-one thousand per family household, according to the Vancouver Sun (2014), yet the average costing home as reached between five hundred thousand in the municipality to over one million within Vancouver, according to articles by Beth Lindsay (2015) of the Vancouver Sun, and Troy Landereville (2015) of The Maple Ridge Times.

The Australian economy is reliant on three key sectors: services, housing, and mining. The services sector employs the largest percentages of Australians – around 80 percent – and is responsible for approximately 70 percent of the country’s GDP (Australian Bureau of Statistics, 2010). With jobs in a variety of specific industries, this sector drives the success of the Australian economy. The housing sector is experiencing unprecedented growth leading to concerns over a potential asset bubble. An increase in the amount

Not to mention, Canada’s populations debt has grown tremendously. In fact, Canada’s current consumer purchase debt is worth more than our nation’s GDP. When you consider all of the above, it’s not surprising that economic and pay growth in Canada hasn’t seen much progress, compared to the national’s annual average. Just this year, it was calculated that minimum wage growth was up by 1.8%, a number that SHOULD average 3.25% annually. Over the past two years, the economy has only grown 1.2% total. This has become a record low, with an annual average of 5% growth. One thing that is booming in our economy is the real estate market, which accounts for 20% of it. Though it may not necessarily be such a good thing, because this means that housing prices and real estate account for a fifth of the country’s monetary growth. In the end, this results in skyrocketing housing prices, which makes it hard for the population to afford a home. Though these statistics don’t lie, the limited salary and monetary growth mixed in with high housing prices is surely to lead to an excessive amount of strain on the populations

Between 1960 and 2006 real house prices increased at an average of 2.7 percent annually, ahead of a 1.9 percent per annum growth in per household real incomes (Yates, 2008). Therefore, over the past half century, there has been an underlying structural affordability problem in Australia due to house price and household income.

Housing affordability is a perennial problem in Australia and has worsened significantly over the past three decades.

This report examines the housing affordability crisis in Auckland, the current situation of the housing market, and extent of this problem. Auckland is in a deficit of houses due to the difference in demand and supply factors. The demographic and economic factors are the main reason for the increase in demand for houses. The supply side is not performing up to the mark to satisfy the demand in the market. The first home buyers are finding difficulties to make choice on their housing needs. The median households are struggling with the high rentals in Auckland market. Lower income households with faces a greater affordability pressures than those are living outside Auckland. There is a shortage in land and houses that are affordable for lower income households. The report suggests some new factors that can be considered to solve the affordability crisis.