HIA says Housing Affordability getting worse in Canberra

Share Canberra's trusted news:

housing

HIA Executive Director, ACT & Southern NSW, Greg Weller, says a new national report released by the Housing Industry Association (HIA), points to worsening housing affordability in the ACT.

“The ACT was one of only two jurisdictions to experience a deterioration of housing affordability during the September 2016 quarter,” said Greg.

“The affordability index for the ACT is estimated to have worsened by 1.5% during the September 2016 quarter, and is 6.3% less favourable than a year earlier.

“The result for the ACT shows that affordability is a bigger problem than any time since the final quarter of 2012. Amongst Australia’s eight capital cities, Canberra is the third most challenging in terms of affordability after Sydney and Melbourne.

“For a family with an average gross household earnings in the Territory, a mortgage on a median priced home will take up around 37% of their budget. This is above what is generally recognised as the manageable level of 30%.”

“Over the 12 month period measured by the report, average earnings are estimated to have increased by only 1.1% which impacts negatively on the report’s outcome.

“House price growth has been the biggest contributor to the fall in the index, which in itself is not altogether bad considering that house prices have only risen modestly over recent years.

“Low interest rates have somewhat helped counter slow wage growth and increasing house prices.

“With an election coming this weekend, it is an ideal opportunity for whoever forms government to reboot the housing affordability debate in Canberra, starting with bringing more land to market and reducing much of the red tape and regulatory hurdles that hamper delivery of new housing.”

Who Can You Trust?

In a world beleaguered by spin and confused messages, there's never been more need for diverse, trustworthy, independent journalism in Canberra.

Who can you trust? Well, for more than 25 years, "CityNews" has proudly been an independent, free, family-owned news magazine, serving the national capital with quality, integrity and authority. Through our weekly magazine and daily through our digital platforms, we constantly and reliably deliver high-quality and diverse opinion, news, arts, socials and lifestyle columns.

If you trust our work online and believe in the power of independent voices, I encourage you to make a small contribution.

Every dollar of support will be invested back into our journalism so we can continue to provide a valuably different view of what's happening around you and keep citynews.com.au free.

Click here to make your donation and you will be supporting the future of journalism and media diversity in the ACT.

Thank you,

Ian Meikle, editor

Previous articleOpen garden / Pretty garden at the heart of the farm
Next articleRape crisis centre still standing up for victims

Leave a Reply