Australia Faces Severe Housing Crisis with Significant Shortfall in New Home Construction and Affordability Issues
Australia is facing a severe housing crisis, with a significant shortfall in new home construction and affordability issues plaguing the nation. The country is predicted to fall short of its 1.2 million new homes target by mid-2029, with total dwelling completions expected to be 940,000 — 22% lower than set in the National Housing Accord. Key workers are being priced out of affordable rental properties in middle-ring suburbs of major cities. The affordability crisis has left many Australians unable to buy homes, with just one in eight potential first-time buyers able to afford a home. Mortgage stress remains high, with 1 million households ‘extremely at risk’ as of June. The financialization of housing and a slowdown in building starts and completions are exacerbating the crisis. Victoria, however, may fare better than other regions. Additionally, renters are four times less likely than current owners to afford a home, and many are co-buying to manage costs. The cost-of-living crisis is pushing Middle Australia into poverty, with more than half of households reducing food spending and a quarter skipping doctors’ visits. Stage 3 tax cuts are expected to ease mortgage stress slightly. Housing affordability in Sydney is expected to remain dire until at least the 2030s. People earning £50,000 or less, and those on median wages of £28,500, are struggling to buy homes.
Tags: Finance, Housing, Crisis, Australia
