Wednesday, August 01, 2007

Home ownership now an 'unattainable dream'

HOME ownership has become an unattainable dream for many low- to middle-income earners in Australia, a new report has found.

The Beyond Reach report, undertaken by the Residential Development Council (RDC), examines the cost of owning or renting a house or unit for six household “types”, comprising different family and wage structures, in 16 metropolitan locations across the country.

It shows owning a median-price home in almost any location in Australia requires a combined household income of about $100,000, while the average annual wage for workers is $55,000 a year.

According to the report, not one of the 16 locations studied offered a median-priced home that was affordable on that level of income.

In calculating affordability, the report used two different measures - that no more than 30 per cent of household incomes should go on housing costs, and a property should cost no more than three to four times the median household income.

RDC executive director Ross Elliott said the research provided a more human angle on the affordability crisis.

“If key workers necessary for society and the economy to function are being denied entry to the housing market, or if the option of a single income family is now completely shattered by the price of housing, we are faced with obvious long-term social and economic consequences,” he said.

Home ownership now an 'unattainable dream' | The Daily Telegraph

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