PRDnationwide reports that housing affordability in Australia is getting tougher despite an increase in average income. Analysts say mortgage costs – and house prices –are rising faster than wages across the country, and in places like Queensland the increases are even greater than countrywide averages. House prices have grown 22.6% more than the average income there while homes remain most affordable in the Northern Territory due to wage increases that have matched house price increases. The report showed that the least amount of change occurred in New South Wales in the last five years. For more on this continue reading the following article from Property Wire.
Housing affordability in Australia has declined by 4.8% across the country during the past five years, according to a new analysis by PRDnationwide.
Affordability is assessed on the percentage of a family’s income needed to service mortgage repayments.
In 2006 the average weekly mortgage repayment in Australia was $325, and the median weekly household income was $1,025. In 2011 the price of the average mortgage was $450, an increase of 38.5%, while household income had risen by just 20.4% to $1,234 per week, PRDnationwide said.
The disparity is even greater in some states including Queensland where the weekly mortgage repayment shot up by 42.3% over the five years, while household income grew by only 19.7%.
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
While individual median weekly income has gone up by 23.8% to $577, rents across Australia have gone up 50% a week.
PRDnationwide research director Aaron Maskrey said approximately 36.5% of the median household income is needed to facilitate the median mortgage repayment in Australia, up from 31.7% in 2006.
‘Households have more dollars to spend but the cost of accommodation is growing quicker than increases to income,’ explained Maskrey.
The analysis has found that dwelling affordability is greatest in the Northern Territory, despite having the highest weekly mortgage repayment of any state. This is due to the substantial increase in household earnings over the past five years.
‘The Northern Territory is the highest earning but highest paying state in Australia. The median household has earned $493 more per week than five years prior,’ said Maskrey.
Of all states, New South Wales recorded the smallest change to the median weekly personal income at 21.7%. ‘Compared to the other states, the median weekly mortgage repayment in NSW increased by the slowest rate of 31.4%,’ he added.
The research also shows that in Victoria, home loans are more affordable than the national average and that the median weekly rental payment in Western Australia has increased by an incredible 76.5% over five years.
Queensland experienced the second highest growth in the median rental payment, up by $100 more per week.
Maskrey said South Australia recorded the smallest change to the weekly household income of 17.6%. While households in Tasmania earn comparatively less than every other state in Australia, at $948 per week. Over the past five years, the weekly household income has grown by 17.6% or $142 per week.
This article was republished with permission from Property Wire.
