A recently released report by the Australian Bureau of Statistics (ABS) shows that despite the national increase in property prices, the percentage of income spent by mortgage-holders and private renter households on housing costs has remained unchanged since 1995.
The report measures housing costs, including rates payments and mortgage or rent payments, whichever is applicable, to show the cost of housing in Australia.
The report shows that since 1994-95, the proportion of households that owned their home outright dropped from 42 to 31 per cent. Those with a mortgage increased from 30 to 37 per cent, and the number of households renting privately increased from 18 to 25 per cent.
Housing costs for private renters increased by eight per cent in 2011-12. This increase saw housing costs for private renter households increase from $322 in 2009-10 to $347 in 2011-12 – however, the proportion of income spent on housing costs for private renters remained at 20 per cent.
The ABS' Director of Living Conditions, Emily Cunningham, noted that "average housing costs in capital cities were 44 per cent higher than housing costs outside capital city areas."
Households in the Northern Territory, Australian Capital Territory, Western Australia and New South Wales reported average housing costs above the national average, while average housing costs in Victoria, South Australia and Tasmania were below the national average. Housing costs in Queensland were similar to the national average of $265 per week.
For more information about the residential property market in your area(s) of interest, please feel free to stop by your local Century 21 Real Estate office for clear and expert advice.