A housing lobby group claims that more than ten percent of Australian households are suffering from housing stress.
Australians for Affordable Housing commissioned the National Centre for Social and Economic Modelling (NATSEM) to produce a report which found more than 850,000 households in Australia, both home owners and renters,are living with financial hardship due to the high cost of housing. The report states that households in mortgage stress face difficulties meeting other repayment obligations after covering the costs of their home loans.
According to the NATSEM study, 26% of renters and 15% of first homebuyers are experiencing housing stress. NATSEM has defined housing stress as households on the lowest 40% of equivalised household incomes contributing more than 30% of their income towards rental payments or home loans.
AHA said Melbourne first homebuyers are the more likely to experience housing stress, while Sydney renters were among the most stressed. Hobart had the highest rate of renters experiencing housing stress at 33%, while Sydney had the highest number at more than 100,000 households. The highest rates of rental stress was experienced by Adelaide recipients of the Commonwealth Rental Assistance scheme.
Unfortunately nothing in the immediate future is likely to alleviate this situation.