There are a number of options available that may address the significant problem of housing stress and decreasing housing affordability in Victoria. Population growth and current taxation settings have also contributed to current housing affordability conditions. The present housing situation is the result of several interconnected factors, including historically low interest rates and rising household debt, as well as rapid house price growth that has outstripped wage growth. § More people are experiencing housing stress and taking on greater debt burdens. § Housing is becoming more unaffordable and § Fewer young people are entering home ownership and they are doing it later § Victoria's population is growing rapidly and is increasingly urbanised This paper provides insights into housing affordability and housing stress in Australia, and specifically in Victoria, over the last decade.Īs this paper will outline, the way Victorians live and engage with the housing market is changing. Consequently, home purchase and renting, particularly in capital cities, is now significantly more difficult than before. The dramatic increase in house prices experienced in Australia in recent years has not been accompanied by a similar level of wage growth. Housing affordability has far-reaching impacts on Australia's economy and the wellbeing of the population. įor an overview of other terms used throughout this paper, please consult the glossary. In contrast, affordable housing refers to housing that is appropriate for the needs of a range of very low- to moderate-income households, and priced (whether mortgage repayments or rent) so these households are able to meet their other essential basic living costs. According to the Australian Housing and Urban Research Institute (AHURI), the term housing affordability is 'a general term, used in reference to the whole housing system, expressing the relationship between housing costs (prices, mortgage payments or rents) and household incomes'.
The terms housing affordability and affordable housing are used throughout this paper, and it is important to note that these terms do not have the same meaning. REIV Real Estate Institute of Victoria A note on terminology NHIF National Housing Infrastructure Facility NHHA National Housing and Homelessness Agreement NHFIC National Housing Finance and Investment Corporation NAHA National Affordable Housing Agreement AHURI Australian Housing and Urban Research InstituteĪIHW Australian Institute of Health and WelfareĬEDA Committee for Economic Development of AustraliaĭHHS Department of Health and Human Services
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