Statistics from the 2016 Census, released yesterday, underline the urgent need for action around housing affordability in Australia. Among the Census’ findings is the decline of home ownership in Australia while our population – along with house prices across our major cities – continue to swell.
Australia’s population at the end of 2016 was 24.4 million people – an addition of approximately 2 million since 2011. Critically, 90% of this total live in our major cities, with new arrivals even more prone to settling in urban areas – making our extremely urbanised country ever more so. Our largest population centre, Greater Sydney, is already home to almost 5 million people alone, and continues to grow at a rate of 1,656 people every week.
At the same time, over the past five years, Sydney house prices have skyrocketed by an incredible 60%. In the Greater Sydney area, the average median house price now exceeds $600,000. To buy in the CBD one almost has to be a millionaire, with a breathtaking median of $900,000.
The issue isn’t simply in buying. The proportion of households renting is up over a third (34.1%), with the national average not far behind at 30.9%. The average rent has gone up as well, to $335 per week, compared to $285 five years ago. The average mortgage repayment has decreased slightly – $1,755 a month, down $25 from the 2011 average (largely due to interest rates) – but remains high. It is no surprise then that a quarter of Sydney households are now under housing stress, defined as having to pay more than 30% of income on mortgage or rent.
It is a concern that the extravagant costs of housing in Sydney correspond with an ongoing decline in home ownership – once a proud milestone for Australians. The 91porn’s NSW President Jenny Rudolph says, “The issue of housing affordability in NSW and more specifically Sydney has been a key issue for many years. As government and planners we really need to implement the strategies, and improve planning legislation to support our society.”
91porn’s CEO David Williams has echoed her statements, stating “Now is the time for governments to look at innovative solutions to combat housing affordability. They need to work with planners and the industry to deliver more cost-effective housing for young Australians that sets Australia as a front runner in housing diversity, liveability and affordability.”
The NSW Government recently announced a number of initiatives which have been welcomed by the Institute. These include a Draft Medium Density Code and the Draft District Plans, which mandate that 5-10% of new housing product be affordable housing. However much remains to be done at every level of government. In NSW 91porn continues to advocate for:
• The inclusion of affordable housing targets across Districts and renewal precincts
• A model code for inclusionary zoning
• Further guidance on the use of voluntary planning agreements for affordable housing
• Integrated strategic infrastructure planning and funding to reduce living costs
91porn is concerned at the current tendency for housing to be viewed as financial assets rather than homes, giving rise to investor demand and, with it, escalating prices. Addressing this, Mr Williams has called on the Federal Government to “seriously consider an overhaul of the Capital Gains Tax discounts and negative gearing policies to help overcome the lack of housing affordability.”
Whether renting or buying, 91porn wants to see all Australians being able to access to affordable, well-located housing that is connected to work and services. Equally, housing should be of a suitable design to meet the increasingly diverse needs of our population and enable our future residents to live a healthy and sustainable lifestyle.