Australians identify groups struggling with housing affordability… Australians spending more income on mortgages…. Mortgage Choice CEO: No bubble ahead...
Study: Affordability still key issue for Aussies
New research led by the University of Adelaide has highlighted two distinct groups of people affected by housing affordability issues over time – those who slip in and out of poor housing affordability, and those who are perpetually stuck in a situation of not being able to afford their own rents or mortgages, according to an article from phys.org
The study refers to the groups as "Stickers" and "Slippers", based on comparisons of housing affordability data over a period of five years. The results of the study have been published in the journal Urban Policy and Research.
"Sadly, Australia still punches well above its weight in international measures of poor housing affordability and a great number of Australians can't afford their rents or mortgages," says lead author Associate Professor Emma Baker, from the University of Adelaide's School of Architecture & Built Environment.
"In order to make recommendations about housing affordability issues, researchers and policy makers often rely on a snapshot only – a point-in-time collection of people's ability to afford their housing… Our priorities around addressing housing affordability should perhaps shift to understanding how people enter and exit unaffordable housing, the long-term influences and effects of this, and what we can do to prevent people becoming stuck in that situation," she says.
Australians spending more income on mortgages
Housing has continued to become less affordable, with households spending a larger share of income on mortgage repayments, according to an article from REBO Online.
Australian families devoted an average of 30.8 per cent of their income to servicing mortgages in the March quarter, according to a housing affordability report from the Real Estate Institute of Australia and Adelaide Bank, a .02 per cent increase compared to last year’s numbers.
In mortgage terms, housing became less affordable in New South Wales, Victoria, South Australia and Tasmania, while it became more affordable in Queensland, Western Australia and the two territories.
Meanwhile, NSW was the worst affected state, with families spending 35.0 per cent of their income on mortgage repayments in the March quarter compared to 34.6 per cent the year before. In Victoria, repayments rose from 32.3 per cent to 32.8 per cent, while South Australians needed 28.4 per cent of their incomes to pay off their mortgage – up from 27.4 per cent.
Mortgage Choice CEO: No bubble ahead
Mortgage Choice CEO John Flavell has challenged claims that there is a property price bubble in Sydney, and to a lesser extent Melbourne, saying it is just a case of supply and demand.
Flavell’s comments come after Treasury secretary John Fraser told a Senate hearing this week that Sydney is “unequivocally” in a housing bubble, as well as some parts of Melbourne.
However, according to the franchise chief, to state that a property bubble exists in Sydney and Melbourne means that you have to believe there will be a sudden and dramatic reduction in property prices over a very short period of time – that ‘the bubble’ will eventually burst.
“Property prices, like the prices for anything else, are driven fundamentally by supply and demand. Is that going to change rapidly or significantly in either Sydney or Melbourne and cause a bust?
“In Australia we have a modest rate of population growth driving modest increases in property demand. We have had historically low levels of new construction keeping supply tight, especially in Sydney and Melbourne,” he said. “We continue to see high rates of urbanization, particularly in NSW and Victoria, as our population is attracted and retained by our largest cities given the employment opportunities and the amenities they provide.”
New research led by the University of Adelaide has highlighted two distinct groups of people affected by housing affordability issues over time – those who slip in and out of poor housing affordability, and those who are perpetually stuck in a situation of not being able to afford their own rents or mortgages, according to an article from phys.org
The study refers to the groups as "Stickers" and "Slippers", based on comparisons of housing affordability data over a period of five years. The results of the study have been published in the journal Urban Policy and Research.
"Sadly, Australia still punches well above its weight in international measures of poor housing affordability and a great number of Australians can't afford their rents or mortgages," says lead author Associate Professor Emma Baker, from the University of Adelaide's School of Architecture & Built Environment.
"In order to make recommendations about housing affordability issues, researchers and policy makers often rely on a snapshot only – a point-in-time collection of people's ability to afford their housing… Our priorities around addressing housing affordability should perhaps shift to understanding how people enter and exit unaffordable housing, the long-term influences and effects of this, and what we can do to prevent people becoming stuck in that situation," she says.
Australians spending more income on mortgages
Housing has continued to become less affordable, with households spending a larger share of income on mortgage repayments, according to an article from REBO Online.
Australian families devoted an average of 30.8 per cent of their income to servicing mortgages in the March quarter, according to a housing affordability report from the Real Estate Institute of Australia and Adelaide Bank, a .02 per cent increase compared to last year’s numbers.
In mortgage terms, housing became less affordable in New South Wales, Victoria, South Australia and Tasmania, while it became more affordable in Queensland, Western Australia and the two territories.
Meanwhile, NSW was the worst affected state, with families spending 35.0 per cent of their income on mortgage repayments in the March quarter compared to 34.6 per cent the year before. In Victoria, repayments rose from 32.3 per cent to 32.8 per cent, while South Australians needed 28.4 per cent of their incomes to pay off their mortgage – up from 27.4 per cent.
Mortgage Choice CEO: No bubble ahead
Mortgage Choice CEO John Flavell has challenged claims that there is a property price bubble in Sydney, and to a lesser extent Melbourne, saying it is just a case of supply and demand.
Flavell’s comments come after Treasury secretary John Fraser told a Senate hearing this week that Sydney is “unequivocally” in a housing bubble, as well as some parts of Melbourne.
However, according to the franchise chief, to state that a property bubble exists in Sydney and Melbourne means that you have to believe there will be a sudden and dramatic reduction in property prices over a very short period of time – that ‘the bubble’ will eventually burst.
“Property prices, like the prices for anything else, are driven fundamentally by supply and demand. Is that going to change rapidly or significantly in either Sydney or Melbourne and cause a bust?
“In Australia we have a modest rate of population growth driving modest increases in property demand. We have had historically low levels of new construction keeping supply tight, especially in Sydney and Melbourne,” he said. “We continue to see high rates of urbanization, particularly in NSW and Victoria, as our population is attracted and retained by our largest cities given the employment opportunities and the amenities they provide.”
