the adviser logo

Housing market ‘inaccessible’ for FHBs: HIA

by Lucy Dean2 minute read
Housing market, HIA

A supply-demand disparity in the Australian housing market has left the market “inaccessible” for new entrants, according to a leading economist.

Tim Reardon, principle economist at the Housing Industry of Australia (HIA), said the 2016 census figures, released on Tuesday, present “symptoms of an under-supplied housing market”.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

He noted a rise in the number of people per dwelling in Sydney and Melbourne to 2.7 people, compared to 2.6 nationally, adding that the “housing affordability squeeze” had lead to high prices and more people per dwelling.

“These figures show that the housing market, in these cities, continues to be undersupplied and inaccessible to new entrants. Households are increasingly forced from the owner-occupier market to the rental market,” Mr Reardon commented.

He added that apartment living was on the rise and that the high cost of land was behind the phenomenon.

“Any additional constraints on the supply of housing will exacerbate this trend,” Mr Reardon said.

The percentage of households where mortgage payments are 30 per cent, or greater, of household income fell from 9.9 per cent to 7.2 per cent between 2011 and 2016. Pointing to this statistic, Mr Reardon said declining interest rates and a growing percentage of renters were contributing factors.

[Related: Fall in home-ownership not surprising, says CoreLogic]

Housing market ‘inaccessible’ for FHBs: HIA
house in hand
TheAdviser logo
house in hand


You need to be a member to post comments. Register for free today


Glen Lees

Connective announces record settlement figures

Mortgage aggregator Connective has revealed that its brokers settled a record $95.5 billion across its residential,...

charles grover outfund ta zgvq5o

New SME lender launches into broker channel

A new fintech lender, Outfund, is ramping up for growth through the broker channel after having completed a capital...

david bailey afg ta l8ozkr

AFG’s bottom line hit by Volt closure

The ASX-listed company, Australian Finance Group Ltd (ASX: AFG) has confirmed it is set to deliver “strong...

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more