Housing out of reach of most young families
A recent report paints a bleak picture of Australia’s housing plans, warning that the current unaffordable and undersupplied market is unlikely to improve anytime soon. According to the report, only 13 percent of homes sold in 2022-23 were considered affordable for families earning the median income of $6,650 per month.
The National Housing Supply and Affordability Council released its findings, projecting that Australia will fall short of its target of 1.2 million new homes by 2029 by 300,000 units. This shortfall exacerbates the existing gap between homeowners and aspiring buyers.
The report highlights significant challenges within Australia’s housing system, including 170,000 individuals on public housing waitlists, 122,000 experiencing homelessness, and widespread housing stress among vulnerable communities.
The rising population is identified as a key factor driving increased demand, pricing out many first-time buyers. Delays and escalating construction costs, along with unaffordable mortgages due to high interest rates in recent years, further compound the issue.
Prospective homeowners face an arduous task, with the average time to save a 20 percent deposit for an average dwelling stretching to around 10 years. Even with a deposit, the report notes that only a small fraction of homes sold are within reach for median-income households.
The reason this has happened is the politicians of both parties have allowed too many migrants into the country. 500,000 a year and similar for many years is just impossible to build houses for. They are still bringing in large numbers even when they know we can’t house them. We will have this problem for at least a decade and the standard of living in this country will take a big hit. Thanks to the politicians who thought it would boost the economy and get them re-elected.