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Housing affordability has ranked third among the top issues Australians want politicians to address, according to NAB.
Worsening household financial stress and housing affordability concerns have contributed to a new low in the share of the population feeling optimistic about the future.
The NAB Wellbeing Index, which measures how Australians feel about their lives in response to changing economic and social conditions and personal finances, fell to a survey low of 21 per cent, and the number of pessimists reached a survey high of 32 per cent.
Household financial stress also rose for the second straight quarter.
More than one in three viewed money as a very significant source of stress in their lives, NAB research found, with most Australians trying to spend less and save more.
Money and finances featured prominently, with satisfaction relatively low for people’s ability to fund retirement, their overall financial position, and household income.
Household financial stress in the first quarter increased in all states bar Western Australia. It was the highest in Victoria.
Despite life satisfaction continuing to fall in some key areas, it remains highest for education, followed by personal safety, family, and housing.
Affordable housing under spotlight
When asked to name the key issues they believe all political parties should focus on during the upcoming election, housing affordability was the third most important factor, with 43 per cent of respondents flagging it.
Research from property data platforms PropTrack and Cotality (formerly CoreLogic) this week confirmed that house prices continue to rise to new heights, raising concerns about housing affordability and the ability of first-time buyers to get onto the property ladder.
Both PropTrack and Cotality expect house prices to rise further this year.
Housing supply and affordability have featured heavily in the run-up to the election, with the Labor Party, the Coalition, and the Greens all pledging new initiatives to support home buyers and boost supply amid a housing affordability crunch.
The Labor Party has committed to expanding the Home Guarantee Scheme to all first home buyers, while the Coalition has proposed increasing the Home Guarantee Scheme income and property caps and pledged to introduce a mortgage interest tax deduction.
Other measures to bolster housing supply include Labor’s move to fast-track qualifications for 6,000 tradies in an effort to grow the number of construction workers and boost house supply, a proposed ban on foreign purchases of established dwellings, and plans to reduce land banking by foreign investors.
Meanwhile, an elected Coalition government would prioritise clearing residential development backlogs and finalise existing residential development environmental approval applications.
However, broker groups and industry associations have called on the parties to implement broader reforms, saying that without holistic measures, the affordability crisis could persist.
[Related: Record-high house prices raise affordability fears]
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