Housing Affordability Is A Growing Concern For Many...

Housing affordability has become a growing concern for many Australian citizens in the past decade. The median Australian house price has risen substantially in the past ten years and has increased at a rate that has exceeded the median income. Between 2012 and 2014, the median house price rose by $76,700, and income rose by $4113.20. Putting those numbers into perspective, the average income in 2014 rose by merely 2.3% in comparison to house prices which rose by 9.23%. Australia’s housing affordability crisis is further highlighted by the International Monetary Fund, who stated, â€Å"Australia has the 3rd most expensive housing market on the planet†. In addressing the issue currently, the Australian government has a combination of policy and†¦show more content†¦The Australian dream of home ownership is under threat, and currently, the nation is facing a serious long-term structural problem in relation to the availability of affordable housing within the cou ntry. Figures from the Australian Bureau of Statistics revealed that since 1982, citizens aged between 25 and 34, who are able to afford their own property have fallen from 56% in 1982 to 34% in 2011, a 30 year low. If this figure is not damning enough, an Australian Bureau of Statistics Survey of Income and Housing revealed that between 1982 and 2011, the percentage of home buyers that spent more than 30% of their gross income on housing costs, increased from 10% to 21%. This figure in itself demonstrates the problem of rising house prices within the nation, especially when income is not growing at the same pace. The growing problem of housing affordability has many serious long-term structural implications, and so, in order for any response to effective in addressing the issue, it is important that the government understands the factors that have contributed to the lack of affordable housing in Australia, both in the supply side and the demand side. Although there are several underlying reasons for the increasing house prices, the main catalysts behind the skyrocketing property prices stem from the demand side of the issue. Australia’s lack of affordable housing is a result of a rapidly growing