The five electorates with the highest levels of housing stress have been revealed as affordability ramps up as a key issue in the coming federal election.
Following the release of 16 recommendations to improve housing affordability, the coalition claimed planning and supply was the issue while the opposition said this was a narrow focus.
However, the inquiry did little to map out a route to recovery, with the Property Council of Australia starting a campaign the same week urging political leaders to address the crisis.
House prices increased at a record rate during the pandemic while wages remained relatively stagnant.
The PCA found 70 per cent of voters feared younger people would never be able to buy a home, believing the great Australian dream was out of reach.
Meanwhile, between 50 per cent and 75 per cent of renters were living in housing stress, which was particularly felt in outer suburban and coastal communities, according to Everybody’s Home.
Electorates experiencing the highest housing stress
| Rank | NSW | Qld | Vic |
| 1 | Macarther 76.5% | Bowman 59.8% | Bruce 64% |
| 2 | Chifley 73.6% | Forde 57.8% | Calwell 63.3% |
| 3 | Mitchell 73.0% | Wright 57.0% | Holt 63.1% |
| 4 | Barton 70.5% | Petrie 53.5% | Lalor 62.9% |
| 5 | Robertson 70.0% | Oxley 52.9% | McEwen 61.5% |
^Source: Proportion of renters living in housing stress. Everybody’s Home, Digital Finance Analytics & UNSW City Futures Research Centre
Rental stress was between 40 per cent and 70 per cent across a majority of seats in Sydney, Melbourne and Brisbane.
Research by Finder showed the impact of housing affordability had vast differences across the generationsm with 62 per cent of baby boomers buying a home by age 30 compared to only one in three millennials.
This came despite record low interest rates, which are expected to hold until after the election, to be held before May 21.
For mortgage holders, delinquencies should hold steady during 2022 as the country transitioned to stable growth, according to Moody’s Investor Service.
PCA chief executive Ken Morrison said with an election only weeks away, the figures should rightly put pressure on federal parties as well as state, territory and local governments.
“Our research shows four of every five aspiring homeowners actually believe the dream of home ownership is unachievable, which you’d have to say is incredibly disheartening,” Morrison said
“It’s no wonder more than half of 18- to 34-year-olds say it will be an important issue for them in deciding their vote, while another quarter felt it was one of the most important issues coming into the election.”
Everybody’s Home’s Kate Colvin, who is also part of the Council to Homeless Persons management team, said both cities and regional areas were feeling the squeeze from soaring housing costs.
“Incomes are not keeping up with surging housing costs. This is no longer an issue which impacts only those on modest incomes or those living in the major cities,” Colvin said.
“Middle-income Australians can’t keep up with rent and mortgage payments. Regional communities are also experiencing housing crises never seen before.”
Colvin said federal funding for social housing is continuing to decline—in 2013-14 there was just over $2 billion spent, but on current forecasts the commonwealth will spend just $1.6 billion in 2023-24.
Article Source: www.theurbandeveloper.com
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