Housing prices have increased significantly compared to incomes over the last two decades, according to the AMP/NATSEM Income and Wealth Report released today.
The report found that while house prices increased by 400 per cent between 1986 and 2007 incomes increased by just 120 per cent.
Households now require 7.5 times their annual disposable income to buy a typical house, the report also said.
“Buying a home has always been a great Australian dream but it is fast becoming out of reach for many,” said AMP managing director of financial services Craig Meller
Other significant report findings included:
• Outright home ownership has dropped from 42.9 per cent to 34.3 per cent in the last decade.
• Twice as many people (9.5 per cent) aged over 60 are still paying off a mortgage compared to 1996.
• 62 per cent of first home buyers are in housing stress.
• Only one in 20 Generation Ys owns a home.
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