Record decline in housing affordability

08/09/10

The June quarter of 2010 is the sixth consecutive quarter to record a decline in housing affordability, with the proportion of income required to meet loan repayments increasing 2% nationwide.

Average monthly loan repayments have increased $446 over the last year ($1,689 in June 09 to $2,135 in June 2010) and the average loan is up $26,208 over the same period ($274,997 in June 09 to $301,205 in June 2010) according to the Real Estate Institute of Australia's Deposit Power Housing Affordability report.

"In 2007 housing affordability was the 'ultimate barbeque stopper' for Labor, yet in 2010 Labor didn't announce any policies to deal with the continued – now record – decline in housing affordability," Opposition housing spokesman, Senator Gary Humphries, said today.

"The steady collapse of housing affordability over six consecutive quarters is unacceptable, leading to Australians having to spend more and more of their disposable income on home ownership.

"Labor in the last Parliament failed to deliver on their promises to make housing more affordable and reigned over huge increases to house prices (up 20%) and rents (up 6.5%) and stood by while levels of homelessness increased by 65%.

"The Coalition on the other hand focused on real action to tackle housing unaffordability, including the release of the Coalition's Real Action Plan for Housing.

"I hope, for the sake of young Australians who want to move into the housing market, that Gillard Labor learns the mistakes of the last Parliament and at last focuses on making housing more affordable," Senator Humphries concluded.