Australia’s Housing Crisis Report Reveals the Scale of the Issue
Only 13 percent of homes sold in 2022-23 were deemed affordable for families earning the median income of $6,650 per month, according to a report.
A report presents a bleak outlook on Australia’s goal to build 1.2 million new homes by 2029, indicating that the unaffordable and undersupplied housing market is unlikely to improve in the near future.
The National Housing Supply and Affordability Council released a report on the country’s housing system, predicting that Australia will fall short of its housing targets by 300,000 units.
Council Chair Susan Lloyd-Hurwitz expressed concern over the growing gap between homeowners and aspiring homebuyers in Australia.
“There are currently 170,000 individuals on public housing waitlists, 122,000 experiencing homelessness, and many vulnerable members of the community facing significant housing stress, which is unacceptable for a country like Australia,” she stated.
Ms. Lloyd-Hurwitz described the goal of building 1.2 million new homes as “ambitious.”
“We are currently facing a shortfall of 40,000 new homes compared to demand over this period. This does not even address the existing undersupply issue,” she explained.
The report attributed Australia’s housing challenges to a rising population, delays in construction, increased costs, and unaffordable mortgages due to high interest rates.
“It takes the average prospective homeowner about 10 years to save a 20 percent deposit for an average home. Even with a deposit, only 13 percent of homes sold in 2022-23 were affordable for a median-income household,” the report highlighted.
