DEFAULTING ON
THE AUSTRALIAN DREAM:
DOES FULLTIME WORK GUARANTEE
ACCESS TO HOUSING?
g
tion and minin
NT – Construc more than half
ding
labourers spen on house rents
e
m
co
in
r
ei
of th
QLD – Highest
ho
stress amongs using
t workers
ies
WA – Many trad
ss
in housing stre
ers priced
SA – Hairdress erties
op
out of rental pr
priced out of
VIC – Plumbers p and rental
hi
home-owners
d security
TAS – Prison an g stress
in
us
ho
officers in
NSW – Averag
e first
unaffordable fo home loan
r teachers
ACT – Real es
tate
spend more th agents need to
an 50
on average fir % of income
st home loan
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
Across
Australia
more than
in ten households
in housing
stress.
That’s
over
Australians
as a people
can one
be characterised
by theare
modesty
of their
ideals.
While
the850,000
Americanhouseholds
Dream
who,
paying
for housing
risk their
of financial
and poverty.
highest rates of
holds after
that all
free folk
have thecosts,
abilityare
to at
make
fortunehardship
through hard
work andThe
entrepreneurialism,
housing
stress Dream
are feltextends
by renters
andasfirst
home buyers
26on
perhome
cent ownership,
of renters and
15on
pera cent
for first
the Australian
as far
a comfortable
lifewith
based
often
suburban
home
buyersblock.
in housing
stress.
quarter-acre
This middle-class
utopia – a mainstay in our cultural psyche since World War II – is held
up as just reward for hard work and gainful employment, but how realistic is this for Australians today?
These figures are revealed in the following summary of research commissioned from the National Centre
for
Economic
Modelling
(NATSEM)
on housing
stress
in Australia.
ThisSocial
reportand
explores
whether
just reward
is provided;
whether
safe,
secure, affordable housing is accessible
to households on a single fulltime income.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution,
Australia,
2009-10, andhouseholds;
calculate rates
of housing
stress census
definedcounted
as households
on couple
the
This report focuses
on single-income
the 2011
Australian
520,156
lowest
40
per
cent
of
equivalised
household
incomes
who
spend
more
than
30
per
cent
of
their
income
on
families with children with one partner employed full-time and the other not working, 901,637 one
housing
costs.
parent families and 1,001,383 lone person households either renting or with a mortgage. Single income
households
are often is
forgotten
in the housing
affordability
debate,
and also
serve
to spending
highlight the
risks
This
30/40 measure
used because
it is households
on lower
incomes
who,
when
more
than
faced
by
dual-income
households
if
one
partner
loses
employment.
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
1
The report
Australian
housing
hasstress
been well
documented
and
1 international literature, and is
The
breaks
downcrisis
housing
across
each state in
bydomestic
tenure type
. The data has shown some
2
increasingly
an issue arising for users of community services. Public awareness of the housing crisis is
surprising
results:
growing as more people feel the effects of housing stress.
• lower
firsthomebuyersinMelbournearemorelikelytoexperiencehousing
At the
end of the income scale, recent evidence from the 2011 Census suggests that high housing
costs (especially
rents)those
are leading
to under-consumption in housing, including severe over-crowding.3
stress than
in Sydney
Average rents rose by 83.7 per cent in the decade from 2000 to 20104, compared to a 34.84 per cent
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
increase
in wages between November 2000 and November 2010.5 A lack of access to affordable rental
properties can lead to a rent trap, where people who wish to purchase a home find themselves in high rent
highest rates of rental stress
accommodation and unable to save for a deposit.
The •
housing
crisis has developed over a period of declining investment in social housing. The post-GFC
unlikelyopponentsHobartandSydneywerebattlingitoutforcities
investment in social housing represented a temporary interruption of the declining proportion of social
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
housing against all dwellings, but without continued and ongoing investment the housing crisis will
continuehighest
to worsen.
rate of renters in housing stress at 33 per cent, Sydney has by far
highest
100,000
households)
Action isthe
required
fromnumber
all levels at
of over
government
to address
house price inflation and the supply of
affordable housing. As this report shows, the once common expectation that regular employment would
provide
the security
of housing
can of
nohousing
longer be
taken
forthe
granted.
The
following
data paints
a picture
stress
and
kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
For example, see OECD pg 14
http://www.keepeek.com/Digital-Asset-Management/oecd/economics/oecd-economic-surveys-australia-2010_eco_surveys-aus-2010-en
2
For example, http://www.acoss.org.au/images/uploads/ACOSS_ACSS2012_FINAL.pdf and
http://www.cisvic.org.au/uploadedFiles/1352746726990-9734.pdf
3
Pg 5 http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/EB59F237159F7102CA257AB100170B61/$File/20490_2011.pdf
4http://www.abs.gov.au/ausstats/subscriber.nsf/LookupAttach/4102.0Data+Cubes-11.12.123/$File/41020_housing_indicators_2012.xls
5http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6302.0May%202012?OpenDocument
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
22
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Major
findings
Introduction
Across
Australia
more
than oneworkers
in ten households
are inare
housing
stress.
That’s
over 850,000
households
• Child
carers,
hospitality
and hairdressers
amongst
those
occupations
most affected
by
who, after
paying
for across
housingAustralia.
costs, are at risk of financial hardship and poverty. The highest rates of
housing
stress
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
on the
average child carers’ income have difficulty finding affordable accommodation.
°° Workers
home buyers
in housing
stress.
Of the states and territories with data available, the average total cash earnings child carers
makesummary
repayments
on the average
first home
loan,
afford median
These figureswas
areinadequate
revealed in to
theeither
following
of research
commissioned
from
theorNational
Centre
rent
for a house
or unit,(NATSEM)
without experiencing
for Social and
Economic
Modelling
on housing housing
stress instress.
Australia.
In Queensland,
NSW,
the ACT,
and the
Northern Territory
more
than half
the
°° figures
NATSEM’s
are derived
fromVictoria,
the Australian
Bureau
of Statistic’s
Household
Income
and of
Income
average
income
of
a
child
carer
is
required
to
meet
average
first
home
repayments.
Of
these,
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
Victoria
is
the
only
state
or
territory
where
50
per
cent
of
income
will
meet
the
median
capital
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income
on
city
rents
for
a
unit.
housing costs.
Australians employed as hairdressers are highly likely to be experiencing housing stress. Of the
°° measure
This 30/40
is used because it is households on lower incomes who, when spending more than
states and territories with data available, the average total cash earnings for hair dressing was
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
inadequate to either make repayments on the average first home loan, or afford median rent
for a house
unit, without
experiencing
housing
stress.type1. The data has shown some
The report breaks
down or
housing
stress across
each state
by tenure
surprising results:
°° Workers in hospitality have difficulty affording Australian rents without experiencing housing
stress. In Queensland, NSW, the ACT and the Northern Territory, at least half of the average
total cash earnings is required to afford median capital city rents, for either houses or units.
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
workers
the average total cash earnings cannot find rent for less than 30 per
stress
than those
in on
Sydney
°° Hospitality
cent of their income in any state except South Australia. This is an indication of high housing
stress amongst workers in hospitality.
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
• The extent of the housing crisis in Queensland is such that workers in occupations normally
highest rates
of rental
stress
considered
well paid
are affected
by housing stress. For example, Queensland is the only state or
territory where legal professionals with a average first home loan must spend more than 30 per cent
their income on mortgage repayments.
•ofunlikelyopponentsHobartandSydneywerebattlingitoutforcities
• Inthatputthetightestsqueezeonrenters(however,whileHobarthasthe
most states and territories there are at least some workers in at least some occupations where
more than half of the average income for their occupation is required to meet average housing costs,
highest
rate
of renters
in housing stress at 33 per cent, Sydney has by far
whether
rent
or mortgage
repayments.
the highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
Australians for Affordable Housing
in today’s housing market across each state in Australia.
Australians for Affordable Housing is a coalition of national housing, welfare and community sector
organisations, established to highlight the problem of housing affordability in Australia.We believe
that all Australians should have access to safe, secure and affordable housing.
Australians for Affordable Housing is calling on both federal and state governments to make the
changes required to make housing more affordable.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
32
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Methodology
Introduction
Across Australia
more
than one
ten householdsand
are rental
in housing
stress.
over 850,000
households
Affordable
housing
is defined
asin
owner-occupied
housing
thatThat’s
is affordable
to all Australians,
who, afterthose
paying
housing
are atincomes.
risk of financial
and poverty.
Thetohighest
including
onfor
middle
andcosts,
moderate
The datahardship
in this report
is current
March rates
2011,ofor has
housing
stresstoare
feltpoint
by renters
and first home buyers with 26 per cent of renters and 15 per cent for first
been
indexed
that
in time.
home buyers in housing stress.
This report demonstrates the extent of Australia’s housing crisis by comparing the average income for a
These of
figures
are revealed
in the
following
of research
from
the Nationaldefinition
Centre
range
occupations
against
housing
costs.summary
To achieve
this, it is commissioned
necessary to use
a measurable
for
Social
and
Economic
Modelling
(NATSEM)
on
housing
stress
in
Australia.
of housing affordability. The generally accepted measure of affordable housing is the ‘30-40’ measure;
housing that is less than 30 per cent of income for those at the bottom 40 per cent of incomes.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution,
and
calculate
of housinginstress
defined
as households
on the
Because
this Australia,
report does2009-10,
not look at
incomes
for rates
the population
general,
but incomes
of specific
lowest
40
per
cent
of
equivalised
household
incomes
who
spend
more
than
30
per
cent
of
their
income
occupations, properties are stated as being affordable for the given occupation if housing costs (rent
or on
housing
costs.
mortgage repayments) are less than 30 per cent of the average income for that occupation group.
This 30/40
measure
is used because
is households
on lower
incomes
who,
spendingAn
more
than
Some
households
experience
housing itstress
at levels higher
than
indicated
by when
this measure.
additional
30
per
cent
of
their
income
on
housing,
face
difficulties
meeting
the
other
basic
costs
of
living.
metric, of whether housing costs would absorb more than 50 per cent of income, is also included.
The report breaks down housing stress across each state by tenure type1. The data has shown some
Average incomes are based on survey data collected by the Australian Bureau of Statistics6, and are given
surprising results:
as state averages. This data was collected in May 2010; in order to bring this data up to the reference
period (March 2011), the figures were indexed to the ABS Labour Price Index.7
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Average first home loans for each state have been used to calculate the weekly mortgage repayments used
stress than those in Sydney
in this report. Home loan data has been taken from ABS Housing Finance reports8 and repayments have
been based on a 25-year mortgage at 6.35% interest.
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Median capital city rents for units and mortgages have been taken from the Australian Property Monitors
highest
rates
of rental
stress
Rental Report
data
for March
2011.
The •
occupations
included in this analysis were chosen from a range of the occupation categories provided
unlikelyopponentsHobartandSydneywerebattlingitoutforcities
by the Australian Bureau of Statistics Employee Earnings and Hours report. The occupations presented
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
here were
chosen to give a cross section of occupations, and because they experience marginal housing
affordability
across
the of
different
state
territory
markets.
highest
rate
renters
in and
housing
stress
at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
6
7
8
1
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6306.0/
http://www.ausstats.abs.gov.au/ausstats/meisubs.nsf/0/0804E9A5431FBAD7CA2578930017343C/$File/63450_mar%202011.pdf
http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5609.0Apr%202012?OpenDocument
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
42
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
The
solutions
Introduction
Across
Australia
than one
ten households
in housing
stress. That’s
over
850,000housing
households
In
August
2012, more
Australians
for in
Affordable
Housingare
released
a four-point
plan for
improving
who, after paying
for following
housing costs,
are atThe
riskfollowing
of financial
poverty.
affordability
over the
five years.
is ahardship
snapshotand
of that
plan:The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
1.buyers
Increase
the supply
of affordable rental housing:
home
in housing
stress.
°° Establish an Affordable Housing Growth Fund that would fund at least 20,000 new lowThese figuresincome
are revealed
in the following
summary of research commissioned from the National Centre
rental properties
each year.
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
°° Double the number of property incentives under the National Rental Affordability Scheme.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
2. Improve housing affordability through tax reform:
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
Change
tax breakshousehold
for housing
investors,
negative
°° per
lowest 40
cent ofthe
equivalised
incomes
wholike
spend
moregearing
than 30and
percapital
cent ofgains
their tax
income on
discounts.
housing costs.
°° Help state governments to abolish stamp duty and introduce a broad-based land tax.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per
of their
on housing, face difficulties meeting the other basic costs of living.
3. cent
Improve
rentincome
assistance:
Establish a Productivity Commission review to enhance the 1effectiveness of Commonwealth
°° breaks
The report
down housing stress across each state by tenure type . The data has shown some
Rent Assistance.
surprising results:
°° Increase the current maximum rate of Commonwealth Rent Assistance to restore its real value
to the household budget. This would be an increase of between $22 and $27 per week,
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
depending on household type.
stress than those in Sydney
4. Set benchmarks for all levels of government to deliver affordable housing:
°° Develop a national housing and infrastructure plan, with transparent funding and
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
accountability arrangements.
highest rates of rental stress
For more detail on these the solutions advocated by Australians for Affordable Housing, see our four-point
plan for housing affordability, available at http://housingstressed.org.au/resources/.
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
Housing
affordability
highest
rate of renters in housing stress at 33 per cent, Sydney has by far
thepresented
highest innumber
at over
households)
The tables
this section
show,100,000
on a state/territory
basis, whether the average ordinary cash
earnings for a household relying on the sole income of the given occupation is adequate to afford the
average
first home
inathe
state,oforhousing
the median
a house
orobstacles
unit in thedifferent
capital households
city, withoutface
going
The following
data loan
paints
picture
stressrent
andfor
the
kinds of
into
housing
stress.
in today’s housing market across each state in Australia.
Where the sample shows that housing costs are more than 50 per cent of the average cash earnings for
people in some occupations, an additional table has been included to show this.
Income data was not available for all occupations in all states and territories. Where data was not
available, those occupations have been removed from the tables and analysis.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
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52
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Queensland
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
HOUSING
STRESS
who, after paying for housing costs, are at risk of financial hardship and poverty.
The
highest rates of
housingAUSTRALIANS
stress
are
felt
by
renters
and
first
home
buyers
with
26
per
cent
of
renters
and
15 per cent for first
FOR
canstress.
afford
AFFORDABLEin Who
HOUSING
COSTS
THROUGHhousing
THE ROOF: at less
home buyers
housing
Average first
Median rents
Median rent for
HOUSING
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 30%
of income?
home loan?
for a unit?
a house?
These figures are revealed in the following summary of research commissioned from the National Centre
for
Social
and Economic Modelling (NATSEM) on housing stress in
Hairdressers
* Australia.
*
*
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Defence forcefigures
members,
fighters from
and police
* Household*Income and Income
*
NATSEM’s
arefire
derived
the Australian Bureau of Statistic’s
Distribution,
Australia, 2009-10, and calculate rates of housing *
stress defined as*households on the
Child carers
*
lowest
40
per
cent
of
equivalised
household
incomes
who
spend
more
than
30
per
cent
of
their
income
on
Cleaners and laundry workers
*
*
*
housing
costs.
Hospitality workers
*
*
*
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
Prison
and security
officers
*
* spending more*than
This
30/40
measure
is used because it is households on lower incomes
who, when
30
per
cent
of
their
income
on
housing,
face
difficulties
meeting
the
other
basic
costs
Human resource and training professionals
*
* of living. *
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
*
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Plumbers
highest rates of rental stress
*
*
The report breaks down housing stress across each state by tenure type1. The data has shown some
Constructionresults:
and mining labourers
*
*
*
surprising
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
*
*
Real estate sales agents
*
*
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
School teachers
*
*
stress than those in Sydney
Social and welfare professionals
*
*
Electricians
*
*
•
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Midwifery and nursing professionals
*
*
highest
rates
of
rental
stress
Legal professionals
*
3
Automotive
and
mechanics
the highestelectricians
number at over 100,000
households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
*
*
*
*
*
*
3
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
SEVERE HOUSING STRESS
highest rate of renters in housing stress at 33 per cent, Sydney has by far
Who
can
afford
at less households)
AFFORDABLE
HOUSING
COSTS
THROUGH
THE ROOF:100,000
the highest
number
athousing
over
Average first
Median rents
Median rent for
HOUSING
AUSTRALIANS FOR
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 50%
of income?
home loan?
for a unit?
a house?
The following data paints a picture of housing stress and the kinds of obstacles different households face
Hairdressers
*
*
*
Introduction
in today’s housing market across each state in Australia.
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
*
*
*
*
*
*
*
who, carers
after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
Child
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Cleaners and laundry workers
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia,
2009-10, and calculate rates of housing stress defined as households on the
Hospitality
workers
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40
measure
is used because itofficers
is households on lower incomes who, when spending more than
Prison
and
security
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
surprising results:
Construction
and mining labourers
The report breaks down housing stress across each state by tenure type1. The data has shown some
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Automotive
and mechanics
stress thanelectricians
those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Real estate
sales agents
highest rates of rental stress
*
*
*
*
*
*
*
*
*
*
*
*
*
*
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market the
across each
state in Australia.
Unfortunately
report
cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
1
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
HousingStressed.org.au
|
62
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
Across Australia
more thansignificant
one in tenhousing
households
areforinworkers,
housing with
stress.
over
850,000
households
Queensland
demonstrated
stress
theThat’s
highest
number
of occupations
who, after
payinghousing
for housing
costs,
areforced
at riskinto
of financial
and poverty.
Thestates
highest
rates
of
unable
to afford
without
being
housing hardship
stress compared
to other
and
territories.
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Stress with affording first home loan
These figures are revealed in the following summary of research commissioned from the National Centre
for•
Social
and
Modelling
(NATSEM) above
on housing
None
of Economic
the workers
in the occupations
could stress
afford in
theAustralia.
average first home loan in
Queensland
without
spending
more
than 30Bureau
per centofofStatistic’s
income on
mortgageIncome
repayments,
an
NATSEM’s
figures are
derived
from the
Australian
Household
and Income
indicator
of
housing
stress.
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
• This
includes
some
occupations
that are
normally
considered
wellthan
paid;
average
for their
lowest
40 per
cent of
equivalised
household
incomes
who
spend more
30onper
cent ofsalaries
their income
on
occupation,
legal professionals with an average first home loan must spend more than 30 per cent
housing
costs.
of their income on mortgage repayments.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
• Queensland was the only state or territory where legal professionals could not afford to make
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
repayments on the average first home loan without experiencing housing stress.
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
Stress with renting
••OffirsthomebuyersinMelbournearemorelikelytoexperiencehousing
the capital cities and occupations included in this report, Brisbane had the highest number
ofstress
occupations
Australia
which need to pay 50 per cent or more of the average income for the
than inthose
in Sydney
median rent for a house.
••This
means the following occupations can be considered to be priced out of Queensland housing
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
rental market:
highest rates of rental stress
°° hairdressers,
°° child carers,
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
°° cleaners and laundry workers,
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
°° hospitality workers,
and of
security
officers,
highest
renters
in housing stress at 33 per cent, Sydney has by far
°° prisonrate
construction
and
mining
labourers,
°° highest number at over
the
100,000 households)
°° mechanics,
estate agents and
°° real
The following
data paints a picture of housing stress and the kinds of obstacles different households face
electricians.
in today’s°° housing
market across each state in Australia.
• Only legal professionals were able to afford the median rent for a Brisbane unit without going into
housing stress, and for most occupations, 50 per cent of the average income was absorbed by the
median rent for a unit.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
72
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
New South Wales
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
HOUSING
STRESS
who, after paying for housing costs, are at risk of financial hardship and poverty.
The
highest rates of
housingAUSTRALIANS
stress
are
felt
by
renters
and
first
home
buyers
with
26
per
cent
of
renters
and
15 per cent for first
FOR
canstress.
afford
AFFORDABLEin Who
HOUSING
COSTS
THROUGHhousing
THE ROOF: at less
home buyers
housing
Average first
Median rents
Median rent for
HOUSING
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 30%
of income?
home loan?
for a unit?
a house?
These figures are revealed in the following summary of research commissioned from the National Centre
for
Social
and Economic Modelling (NATSEM) on housing stress in
Hairdressers
* Australia.
*
*
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Defence forcefigures
members,
fighters from
and police
3 Household3
*
NATSEM’s
arefire
derived
the Australian Bureau of Statistic’s
Income and Income
Child carers
*
Distribution,
Australia, 2009-10, and calculate rates of housing *
stress defined as*households on the
lowest
40
per
cent
of
equivalised
household
incomes
who
spend
more
than
30
per
cent
of
their
income
on
Cleaners and laundry workers
*
*
*
housing
costs.
Hospitality workers
*
*
*
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
Prison
and security
officers
*
* spending more*than
This
30/40
measure
is used because it is households on lower incomes
who, when
Human
resource
professionals
* other basic costs
* of living. *
30
per cent
of and
theirtraining
income
on housing, face difficulties meeting the
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
*
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Plumbers
highest rates of rental stress
*
*
The report breaks down housing stress across each state by tenure type1. The data has shown some
Construction and mining labourers
*
*
*
surprising
results:
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
*
*
Real estate sales agents
*
*
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
School teachers
*
3
stress than those in Sydney
Social and welfare professionals
*
*
Electricians
*
*
•
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Midwifery and nursing professionals
3
3
highest rates of rental stress
Legal professionals
3
3
Automotive
and
mechanics
the highestelectricians
number at over 100,000
households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
*
*
*
*
*
*
3
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households) SEVERE HOUSING STRESS
AUSTRALIANS FOR
AFFORDABLE
Who
canCOSTS
afford
HOUSING
THROUGHhousing
THE ROOF: at less
Average first
Median rents
Median rent for
*
*
*
3
*
*
*
*
*
*
*
*
HOUSING data paints
AUSTRALIA’S
HOUSING
The following
a picture
of STRESS
housing stress and the home
kindsloan?
of obstacles
face
than 50%
of income?
fordifferent
a unit? households
a house?
in today’s housing market across each state in Australia.
HousingStressed.org.au
Hairdressers
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, carers
after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
Child
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
These figures and
are revealed
in the following summary
of research commissioned from the National Centre
Cleaners
laundry
workers
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia,
2009-10, and calculate rates of housing stress defined as households on the
Hospitality
workers
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
Unfortunately
the inreport
cannot
provide
housing
stress numbers for the Australian Capital Territory and Northern Territory as data on
highest rate of renters
housing stress
at 33 per cent,
Sydney has by
far
the highest number at over 100,000 households)
the territories
is reported together.
1
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
HousingStressed.org.au
|
82
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
The average first home loan in New South Wales was $310,400 – the highest of the Australian states.9
Across Australia
more than
onehome
in ten households are in housing stress. That’s over 850,000 households
Stress
with affording
first
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
• Average
home
NSW
were
unaffordable
for26
workers
on of
therenters
average
the
housing
stress first
are felt
by loans
rentersinand
first
home
buyers with
per cent
andcash
15 earnings
per cent for first
without going into housing stress:
home following
buyers in occupations,
housing stress.
°° hairdressers,
These figures
are revealed in the following summary of research commissioned from the National Centre
child
carers, Modelling (NATSEM) on housing stress in Australia.
for Social°°and
Economic
°° cleaners and laundry workers,
NATSEM’s figures
are derived
from the Australian Bureau of Statistic’s Household Income and Income
workers,
°° hospitality
Distribution,
Australia, 2009-10, and calculate rates of housing stress defined as households on the
prison and security officers,
°° per
lowest 40
cent of equivalised household incomes who spend more than 30 per cent of their income on
°° plumbers,
housing costs.
°° construction and mining labourers,
This 30/40 measure
is used
becauseand
it ismechanics,
households on lower incomes who, when spending more than
electricians
°° automotive
30 per cent
of their income on housing, face difficulties meeting the other basic costs of living.
°° human resources and training professionals,
real estate
The report
downagents,
housing stress across each state by tenure type1. The data has shown some
°° breaks
surprising
results:
°° school teachers,
°° social and welfare professionals, and
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
°° electricians.
stress than those in Sydney
Stress with renting
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
••Sydney
displays high housing stress amongst renters for most of the occupations listed in this report.
• Workers
in the
following
occupations,
highest
rates
of rental
stress on average cash earnings, will be in housing stress if they rent
a unit in Sydney:
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
°° hairdressers,
°° child carers,
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
°° cleaners and laundry workers,
highest
rate of renters in housing stress at 33 per cent, Sydney has by far
°° hospitality workers,
the
highest
at over 100,000 households)
andnumber
security officers,
°° prison
°° human resource and training professionals,
The following
data paints a picture of housing stress and the kinds of obstacles different households face
°° plumbers,
in today’s°° housing
marketand
across
eachlabourers,
state in Australia.
construction
mining
°° car electricians and mechanics,
°° real estate sales agents,
°° social and welfare professionals, and
°° electricians.
• Only legal professionals could afford the median rent for a house in Sydney without going into
housing stress.
• The average incomes of hairdressers, child carers, hospitality workers, cleaners and laundry workers
is inadequate to afford the median rent on either a unit or house without spending more than 50 per
cent of their income on rent.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
9
Does not include
territories.
the territories
is reported
together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
92
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
Australian
Capital Territory
10
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
HOUSING STRESS
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers
AUSTRALIANS FOR in housing stress.
AFFORDABLE
HOUSING
Who
canCOSTS
afford
HOUSING
THROUGHhousing
THE ROOF: at less
Average first
Median rents
Median rent for
*
*
*
*
*
*
*
*
*
AUSTRALIA’S HOUSING STRESS
These figures arethan
revealed
inof
the
following summary of research
commissioned
the National
Centre
30%
income?
home
loan?
forfrom
a unit?
a house?
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
HousingStressed.org.au
Child
carers
Introduction
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Cleaners and laundry workers
*
*
*
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
Hospitality workers
*
*
*
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income
on
Prison and
security officers
*
*
*
housing
costs.
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40resource
measure is used because
it is households
on lower incomes
who, when spending more than
Human
and
training
professionals
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
Plumbers
*
*
*
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Construction
and
mining labourers
stress than those
in Sydney
The
report electricians
breaks down
housing stress across each state by tenure
Automotive
and mechanics
* type1. The data*has shown some
*
surprising
results:
Real estate sales agents
*
*
*
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
School the
teachers
highest number at over 100,000 households)
*
3
*
3
•andfirsthomebuyersinMelbournearemorelikelytoexperiencehousing
Social
welfare professionals
*
*
Electricians
*
*
stress than those in Sydney
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
Midwifery and nursing professionals
Legal
3
3
•professionals
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
*
*
*
*
3
highest rates of rental stress
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
SEVERE HOUSING STRESS
highest rate of renters in housing stress at 33 per cent, Sydney has by far
Who
can
afford
at less households)
AFFORDABLE
HOUSING
COSTS
THROUGH
THE ROOF:100,000
the highest
number
athousing
over
Average first
Median rents
Median rent for
HOUSING
AUSTRALIANS FOR
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 50%
of income?
home loan?
for a unit?
a house?
The following data paints a picture of housing stress and the kinds of obstacles different households face
Child
carers
*
*
*
Introduction
in today’s
housing market across each state in Australia.
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
*
*
*
who, after paying
for housing
costs, are at risk
of financial hardship and poverty. The highest rates of
Cleaners
and
laundry
workers
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
These figures are revealed
in the following summary of research commissioned from the National Centre
Hospitality
workers
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Australia,
2009-10,agents
and calculate rates of housing stress defined as households on the
RealDistribution,
estate
sales
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
*
*
3
*
*
*
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
number
at over 100,000 households)
10 Not the
allhighest
of the
occupations
analysed in this report had data available for the Australian Capital Territory, those without data available are excluded from
The following
data paints a picture of housing stress and the kinds of obstacles different households face
this
table.
1
in today’s housing market the
across each
state in Australia.
Unfortunately
report
cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
HousingStressed.org.au
| 102
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
Across Australia
one in ten households
in housing
That’s over
households
Although
the ACTmore
has than
the second-highest
average are
income
across stress.
the occupations
for850,000
which data
is
who, after($1,279.10),
paying for housing
costs,
are atrents
risk of
hardship
andto
poverty.
The highest
available
average
Canberra
arefinancial
very high
compared
other capital
cities rates
(only of
Darwin
housing
stress
felt byrents).
renters
and
first home
buyersloan
within26
cent
of renters and
15 per
centthat
for in
first
and
Sydney
hadare
higher
The
average
first home
theper
ACT
($317,700)
is higher
than
home ($210,400).
buyers in housing
NSW
Only stress.
the Northern Territory has a higher average first home loan than the ACT, of all
Australian states and territories.
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
Stress with affording first home loan
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
• Of the professions
included in
this
report, only
professionals
can afford
the average on
firstthe
home
Distribution,
Australia, 2009-10,
and
calculate
rateslegal
of housing
stress defined
as households
in the
ACT
without being
forced into
housing
stress.
lowestloan
40 per
cent
of equivalised
household
incomes
who
spend more than 30 per cent of their income on
housing
• Of costs.
the other occupation groups, it would take more than half of the average cash earnings of child
carers, cleaners and laundry workers, hospitality workers and real estate sales agents to meet
This 30/40
measure
is used
it is households
average
first home
loanbecause
repayments
in the ACT. on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type . The data has shown some
Stress
with renting
surprising results:
1
• Only teachers, midwives and legal professionals could afford to rent a unit in Canberra without going
housing stress.
•into
firsthomebuyersinMelbournearemorelikelytoexperiencehousing
• Only legal professionals could afford to rent a house without going into housing stress.
stress than those in Sydney
• Child carers, cleaners and laundry workers, and hospitality workers on average income for their
profession cannot afford median house or unit rents in Canberra without spending more than 50 per
•cent
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
of their income on rent.
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
11
2
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Victoria
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
HOUSING
STRESS
who, after paying for housing costs, are at risk of financial hardship and poverty.
The
highest rates of
housingAUSTRALIANS
stress
are
felt
by
renters
and
first
home
buyers
with
26
per
cent
of
renters
and
15 per cent for first
FOR
canstress.
afford
AFFORDABLEin Who
HOUSING
COSTS
THROUGHhousing
THE ROOF: at less
home buyers
housing
Average first
Median rents
Median rent for
HOUSING
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 30%
of income?
home loan?
for a unit?
a house?
These figures are revealed in the following summary of research commissioned from the National Centre
for
Social
and Economic Modelling (NATSEM) on housing stress in
Hairdressers
* Australia.
*
*
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Defence forcefigures
members,
fighters from
and police
3 Household3
3
NATSEM’s
arefire
derived
the Australian Bureau of Statistic’s
Income and Income
Distribution,
Australia, 2009-10, and calculate rates of housing *
stress defined as*households on the
Child carers
*
lowest
40
per
cent
of
equivalised
household
incomes
who
spend
more
than
30
per
cent
of
their
income
on
Cleaners and laundry workers
*
*
*
housing
costs.
Hospitality workers
*
*
*
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
Prison
and security
officers
*
* spending more*than
This
30/40
measure
is used because it is households on lower incomes
who, when
30
per
cent
of
their
income
on
housing,
face
difficulties
meeting
the
other
basic
costs
Human resource and training professionals
*
3 of living. 3
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
*
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Plumbers
highest rates of rental stress
*
*
The report breaks down housing stress across each state by tenure type1. The data has shown some
Constructionresults:
and mining labourers
3
3
3
surprising
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
*
*
Real estate sales agents
*
*
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
School teachers
*
3
stress than those in Sydney
Social and welfare professionals
*
3
Electricians
*
3
•
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Midwifery and nursing professionals
3
3
highest
rates
of
rental
stress
Legal professionals
3
3
Automotive
and
mechanics
the highestelectricians
number at over 100,000
households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
*
*
3
3
3
3
3
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households) SEVERE HOUSING STRESS
AUSTRALIANS FOR
AFFORDABLE
Who
canCOSTS
afford
HOUSING
THROUGHhousing
THE ROOF: at less
Average first
Median rents
Median rent for
*
*
*
*
3
3
*
3
3
HOUSING data paints
AUSTRALIA’S
HOUSING
The following
a picture
of STRESS
housing stress and the home
kindsloan?
of obstacles
face
than 50%
of income?
fordifferent
a unit? households
a house?
in today’s housing market across each state in Australia.
HousingStressed.org.au
Hairdressers
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Child carers
These figures and
are revealed
in the following summary
of research commissioned from the National Centre
Cleaners
laundry
workers
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
Unfortunately
the inreport
cannot
provide
housing
stress numbers for the Australian Capital Territory and Northern Territory as data on
highest rate of renters
housing stress
at 33 per cent,
Sydney has by
far
the highest number at over 100,000 households)
the territories
is reported together.
1
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
HousingStressed.org.au
| 122
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
Across Australia
more than
onehome
in tenloan
households are in housing stress. That’s over 850,000 households
Stress
with affording
first
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
• The
average
cashbyearnings
of workers
in the
following
is inadequate
average
housing
stress
are felt
renters and
first home
buyers
with occupations
26 per cent of
renters and to
15meet
per cent
for first
home
loan repayments
home first
buyers
in housing
stress. in Victoria, without going into housing stress:
°° hairdressers,
These figures
are revealed in the following summary of research commissioned from the National Centre
child
carers, Modelling (NATSEM) on housing stress in Australia.
for Social°°and
Economic
°° prison and security officers,
NATSEM’s figures
are derived from the Australian Bureau of Statistic’s Household Income and Income
°° plumbers,
Distribution,
Australia, 2009-10, and calculate rates of housing stress defined as households on the
school teachers, and
°° per
lowest 40
cent of equivalised household incomes who spend more than 30 per cent of their income on
° electricians.
housing °costs.
• More than half the average income of hairdressers, child carers and cleaners and laundry workers is
This 30/40
measure
is mortgage
used because
it is households
on lower
incomes
who,inwhen
spending more than
required
to meet
repayments
on the average
first
home loan
Victoria.
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report
breaks
down housing stress across each state by tenure type . The data has shown some
Stress
with
renting
1
surprising results:
• On the average income for their occupation, child carers, hospitality workers, human resource
and automotive mechanics are among those unable to afford the median rent for a
•workers
firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Melbourne unit without experiencing housing stress.
stressrents
thanin those
in Sydney
• Median
Melbourne
were well out of reach of hairdressers, making up more than half of the
average hairdressers’ income.
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
13
2
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Tasmania
Introduction
11
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
HOUSING
STRESS
who, after paying for housing costs, are at risk of financial hardship and poverty.
The
highest rates of
AUSTRALIANS
FOR
housing stress are
felt
by
renters
and
first
home
buyers
with
26
per
cent
of
renters
and
15 per cent for first
canCOSTS
afford
AFFORDABLE Who
HOUSING
THROUGHhousing
THE ROOF: at less
Average first
Median rents
Median rent for
HOUSING in housingAUSTRALIA’S
home buyers
stress. HOUSING STRESS
HousingStressed.org.au
than 30% of income?
home loan?
for a unit?
a house?
These figures are revealed in the following summary of research commissioned from the National Centre
Cleaners
and
laundry
workers Modelling (NATSEM) on housing stress in
* Australia.
*
*
Introduction
for
Social
and
Economic
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for
housing costs, are at risk of financial hardship and poverty. The highest rates of
Hospitality
workers
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
*
*
*
*
3
*
3
3
3
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Prison and security officers
*
3
*
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
Human resource and training professionals
3
3
3
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
Plumberscosts.
*
3
*
housing
home buyers in housing stress.
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type . The data has shown some
surprising results:
Construction
and mining labourers
1
This 30/40 measure is used because it is households on lower incomes who, when spending more than
Automotive electricians and mechanics
*
3
*
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Real estate
sales agents
highest rates of rental stress
The
report
breaks down housing stress across each state by tenure
School
teachers
3 type1. The data3has shown some
3
surprising
results:
Social and welfare professionals
3
3
3
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
3
The following data paints a picture of housing stress and the kinds of obstacles different households face
Electricians
in today’s housing market across each state in Australia.
3
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Midwifery
and nursing professionals
3
3
stress than those in Sydney
3
3
Tasmania has the lowest average ordinary time earnings across the occupations with available data. It also
has •
highCommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
rates of unemployment compared to other states and territories in Australia (17.1 per cent in
November 201212). As the lower housing costs in Tasmania are matched by lower incomes, housing stress
of rental stress
remains highest
an issue rates
in Tasmania.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
• with
unlikelyopponentsHobartandSydneywerebattlingitoutforcities
Stress
affording first home
• Onthatputthetightestsqueezeonrenters(however,whileHobarthasthe
average incomes for their occupation, workers in the following occupations can be considered to
behighest
priced out
of the
housing markets
in Tasmania:
rate
of renters
in housing
stress at 33 per cent, Sydney has by far
workers, at over 100,000 households)
°° hospitality
the
highest number
°° cleaners and laundry workers,
°° plumbers,
The following
data paints a picture of housing stress and the kinds of obstacles different households face
construction
mining
and
in today’s°° housing
marketand
across
eachlabourers,
state in Australia.
°° automotive electricians and mechanics.
Stress with renting
• Hospitality workers, cleaners and laundry workers on the average income for their occupation cannot
afford the median Hobart rent for a unit without experiencing housing stress.
• Affordability worsens for workers who need to rent a house: plumbers, construction and mining
labourers and automotive electricians and mechanics on the average income for their occupation are
also forced into housing stress when paying median house rents in Hobart.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
11 Not all of the occupations analysed in this report had data available for Tasmania, those without data available are excluded from this table.
the
territories is reported together.
12 http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6202.0Nov%202012?OpenDocument
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
| 142
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
South
Australia
Introduction
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
13
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
HOUSING
STRESS
who, after paying for housing costs, are at risk of financial hardship and poverty.
The
highest rates of
AUSTRALIANS
FOR
housing stress are
felt
by
renters
and
first
home
buyers
with
26
per
cent
of
renters
and
15 per cent for first
canCOSTS
afford
AFFORDABLE Who
HOUSING
THROUGHhousing
THE ROOF: at less
Average first
Median rents
Median rent for
HOUSING in housingAUSTRALIA’S
home buyers
stress. HOUSING STRESS
HousingStressed.org.au
than 30% of income?
home loan?
for a unit?
a house?
These figures are revealed in the following summary of research commissioned from the National Centre
Hairdressers
* Australia.
*
*
Introductionand Economic Modelling (NATSEM) on housing stress in
for
Social
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying
for housing
costs, are at risk of financial
and poverty. and
The highestpolice
rates of
Defence
force
members,
firehardship
fighters
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
3
3
3
3
3
3
*
3
*
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Cleaners and laundry workers
*
*
*
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
Hospitality workers
*
3
*
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income
on
Prison and
security officers
*
3
*
housing
costs.
home buyers in housing stress.
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type . The data has shown some
surprising results:
Human
resource and training professionals
1
This 30/40 measure is used because it is households on lower incomes who, when spending more than
Plumbers
3
3
3
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Construction
and mining labourers
highest rates of rental stress
The
report electricians
breaks down
housing stress across each state by tenure
Automotive
and mechanics
* type1. The data3has shown some
*
surprising
results:
Real estate sales agents
*
3
*
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
School
in today’steachers
housing market across each state in Australia.
3
3
Midwifery and nursing professionals
3
3
•andfirsthomebuyersinMelbournearemorelikelytoexperiencehousing
Social
welfare professionals
*
3
Electricians
3
3
stress than those in Sydney
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
Legal
3
3
•professionals
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au | 2
3
3
3
3
3
highest rates of rental stress
Stress with affording first home
unlikelyopponentsHobartandSydneywerebattlingitoutforcities
••For
more than half of the workers in this report, average incomes for their occupation are insufficient to
make
repayments on the average first home loan in South Australia without going into housing stress.
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
• This includes hospitality workers, construction and mining labourers, automotive electricians and
highest rate of renters in housing stress at 33 per cent, Sydney has by far
mechanics and real estate agents.
the highest number at over 100,000 households)
Stress with renting
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s
housing
across
each state
• Median
rentsmarket
for units
in Adelaide
are in
tooAustralia.
high for hairdressers, cleaners and laundry workers on the
average income for their occupation to afford without experiencing housing stress.
• There is high housing stress amongst workers with families requiring rental houses; when relying on
the average cash earnings of a sole income, workers in the following occupations experience housing
stress when paying average house rents in Adelaide:
°°
°°
°°
°°
°°
hospitality workers,
prison and security officers,
construction and mining labourers,
automotive electricians and mechanics, and
real estate agents.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
13 Not all of the occupations analysed in this report had data available for the South Australia, those without data available are excluded from this table.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
15
2
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Western
Australia
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
HOUSING
STRESS
who, after paying for housing costs, are at risk of financial hardship and poverty.
The
highest rates of
housingAUSTRALIANS
stress
are
felt
by
renters
and
first
home
buyers
with
26
per
cent
of
renters
and
15 per cent for first
FOR
canstress.
afford
AFFORDABLEin Who
HOUSING
COSTS
THROUGHhousing
THE ROOF: at less
home buyers
housing
Average first
Median rents
Median rent for
HOUSING
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 30%
of income?
home loan?
for a unit?
a house?
These figures are revealed in the following summary of research commissioned from the National Centre
for
Social
and Economic Modelling (NATSEM) on housing stress in
Hairdressers
* Australia.
*
*
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Defence forcefigures
members,
fighters from
and police
3 Household3
3
NATSEM’s
arefire
derived
the Australian Bureau of Statistic’s
Income and Income
Distribution,
Australia,
2009-10, and calculate rates of housing *
stress defined as*households on the
Cleaners and laundry
workers
*
lowest
40
per
cent
of
equivalised
household
incomes
who
spend
more
than
30
per
cent
of
their
income
on
Hospitality workers
*
*
*
housing
costs.
Prison and security officers
*
*
*
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
Human
resource
and training
professionals
*
3 spending more*than
This
30/40
measure
is used
because it is households on lower incomes
who, when
30
per
cent
of
their
income
on
housing,
face
difficulties
meeting
the
other
basic
costs
Plumbers
*
* of living. *
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
3
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Construction
and mining labourers
highest rates of rental stress
3
3
The report breaks down housing stress across each state by tenure type1. The data has shown some
Automotive results:
electricians and mechanics
3
3
3
surprising
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
*
*
School teachers
3
3
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Social and welfare professionals
3
3
stress than those in Sydney
Electricians
*
3
Midwifery and nursing professionals
3
3
•
CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Legal professionals
3
3
Real estate
sales
the highest
number atagents
over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
highest rates of rental stress
*
3
3
*
3
3
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
SEVERE
HOUSING
highest rate of renters in housing stress at 33 per cent,
Sydney
hasSTRESS
by far
the highest
number
at over
100,000 households)
can
afford
AFFORDABLE Who
HOUSING
COSTS
THROUGHhousing
THE ROOF: at less
AUSTRALIANS FOR
HOUSING
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 50%
of income?
Average first
home loan?
Median rents
for a unit?
Median rent for
a house?
*
3
*
The following data paints a picture of housing stress and the kinds of obstacles different households face
inHairdressers
today’s
*
3
*
Introductionhousing market across each state in Australia.
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying
for housing
costs, are at risk
of financial hardship and poverty. The highest rates of
Cleaners
and
laundry
workers
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
1
Unfortunately
the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
the territories
is reported together.
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
HousingStressed.org.au
| 162
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
Across Australia
than oneare
in being
ten households
That’s
over Australia.
850,000 households
Workers
in manymore
occupations
left behindare
by in
thehousing
miningstress.
boom in
Western
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
Whilst
Australia
the and
highest
income
of all
andofterritories
for 15
theper
occupations
housingWestern
stress are
felt by had
renters
first average
home buyers
with
26 states
per cent
renters and
cent for first
included
in the
data,stress.
it also recorded the fourth highest average first home loan and Perth the fourth
home buyers
in ABS
housing
highest median rents for both units and houses compared to other capital cities.
These figures are revealed in the following summary of research commissioned from the National Centre
for Social these
and Economic
on housing
stress across
in Australia.
However,
averages Modelling
appear to (NATSEM)
mask the income
disparities
different occupations. Western
Australia still displays significant housing stress amongst workers.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
Stress
with
first home
lowest 40
peraffording
cent of equivalised
household incomes who spend more than 30 per cent of their income on
housing costs.
• Key workers relying solely on average cash earnings in the following occupation groups could not
afford measure
to make is
mortgage
repayments
on the average
first incomes
home loan
in Western
Australiamore
without
This 30/40
used because
it is households
on lower
who,
when spending
than
housing
stress:
30 pergoing
cent into
of their
income
on housing, face difficulties meeting the other basic costs of living.
hospitality workers,
°° breaks
The report
down housing stress across each state by tenure type1. The data has shown some
prison and security officers,
°° results:
surprising
°° cleaners and laundry workers,
°° hairdressers, and
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
°° plumbers.
stress than those in Sydney
• Repayments on the average first home loan in Western Australia would absorb at least half of the
average income for hairdressers, cleaners and laundry workers.
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest
rates of rental stress
Stress with
renting
••Hospitality
workers, prison and security officers and plumbers on an average income for their
unlikelyopponentsHobartandSydneywerebattlingitoutforcities
occupation could not afford to pay median rents for a unit or house in Perth, without experiencing
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
housing
stress.
• Hairdressers,
cleaners
and laundry
workersstress
earning
income
for their
occupation
highest rate
of renters
in housing
atthe
33average
per cent,
Sydney
has
by far could
not afford the median rent for a house in Perth without spending more than half or their income on
the highest number at over 100,000 households)
housing costs.
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
17
2
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
Introduction
Northern Territory
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
14
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
HOUSING
STRESS
who, after paying for housing costs, are at risk of financial hardship and poverty.
The
highest rates of
housingAUSTRALIANS
stress
are
felt
by
renters
and
first
home
buyers
with
26
per
cent
of
renters
and
15 per cent for first
FOR
canstress.
afford
AFFORDABLEin Who
HOUSING
COSTS
THROUGHhousing
THE ROOF: at less
home buyers
housing
Average first
Median rents
Median rent for
HOUSING
HousingStressed.org.au
AUSTRALIA’S HOUSING STRESS
than 30%
of income?
home loan?
for a unit?
a house?
These figures are revealed in the following summary of research commissioned from the National Centre
for
Social
Child
carersand Economic Modelling (NATSEM) on housing stress in
* Australia.
*
*
Introduction
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
Cleaners andfigures
laundry are
workers
* Household*Income and Income
*
NATSEM’s
derived from the Australian Bureau of Statistic’s
Hospitality workers
*
Distribution,
Australia, 2009-10, and calculate rates of housing *
stress defined as*households on the
lowest
40
per
cent
of
equivalised
household
incomes
who
spend
more
than
30
per
cent
of
their
income
on
Prison and security officers
*
*
*
housing
costs.
Human resource and training professionals
*
*
*
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
Plumbers
*
* spending more*than
This
30/40 measure is used because it is households on lower incomes
who, when
30
per centand
of their
Construction
miningincome
labourerson housing, face difficulties meeting the
* other basic costs
* of living. *
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
*
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
Automotive
electricians and mechanics
highest rates of rental stress
*
*
The report breaks down housing stress across each state by tenure type1. The data has shown some
Real estate results:
sales agents
*
*
*
surprising
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
3
*
Social and welfare professionals
3
*
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Electricians
3
*
stress than those in Sydney
Midwifery and nursing professionals
3
*
School the
teachers
highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
*
*
*
*
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
SEVERE HOUSING STRESS
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
Who
canCOSTS
afford
AFFORDABLE
HOUSING
THROUGHhousing
THE ROOF: at less
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
Average first
Median rents
Median rent for
HOUSING
AUSTRALIA’S HOUSING STRESS
than
50%
of
income?
home loan?
for a unit?
a house?
highest rate of renters in housing stress at 33 per cent, Sydney has by far
Child
carers
*
*
*
Introduction
the highest number at over 100,000 households)
AUSTRALIANS FOR
HousingStressed.org.au
Across Australia more than one in ten households are in housing stress. That’s over 850,000 households
*
*
*
Hospitality
workers
3 of obstacles different
*
* face
The
following
data paints a picture of housing stress and the kinds
households
inPrison
today’s
housing
market across each state in Australia.
and security
officers
3
3
*
Human resource and training professionals
3
3
*
Plumbers
3
3
*
Construction and mining labourers
3
3
*
who, after paying
for housing
costs, are at risk
of financial hardship and poverty. The highest rates of
Cleaners
and
laundry
workers
housing stress are felt by renters and first home buyers with 26 per cent of renters and 15 per cent for first
home buyers in housing stress.
These figures are revealed in the following summary of research commissioned from the National Centre
for Social and Economic Modelling (NATSEM) on housing stress in Australia.
NATSEM’s figures are derived from the Australian Bureau of Statistic’s Household Income and Income
Distribution, Australia, 2009-10, and calculate rates of housing stress defined as households on the
lowest 40 per cent of equivalised household incomes who spend more than 30 per cent of their income on
housing costs.
This 30/40 measure is used because it is households on lower incomes who, when spending more than
30 per cent of their income on housing, face difficulties meeting the other basic costs of living.
The report breaks down housing stress across each state by tenure type1. The data has shown some
surprising results:
• firsthomebuyersinMelbournearemorelikelytoexperiencehousing
stress than those in Sydney
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
highest rates of rental stress
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
highest rate of renters in housing stress at 33 per cent, Sydney has by far
the highest number at over 100,000 households)
The following data paints a picture of housing stress and the kinds of obstacles different households face
in today’s housing market across each state in Australia.
14 Not all of the occupations analysed in this report had data available for the Northern Territory, those without data available are excluded from this table.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
HOUSING COSTS THROUGH THE ROOF: AUSTRALIA’S HOUSING STRESS
HousingStressed.org.au
|
2
DEFAULTING
THE AUSTRALIAN
FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING ON
COSTS
THROUGHDREAM:
THE DOES
ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
| 182
AUSTRALIANS FOR
AFFORDABLE
HOUSING
HousingStressed.org.au
DEFAULTING
THE AUSTRALIAN
HOUSING
COSTSONTHROUGH
THE DREAM:
ROOF:
DOES FULLTIME WORK GUARANTEE ACCESS TO HOUSING?
AUSTRALIA’S HOUSING STRESS
Introduction
Across Australia
more than
onehome
in ten households are in housing stress. That’s over 850,000 households
Stress
with affording
first
who, after paying for housing costs, are at risk of financial hardship and poverty. The highest rates of
• Average
home
NSW
were
unaffordable
for26
workers
on of
therenters
average
the
housing
stress first
are felt
by loans
rentersinand
first
home
buyers with
per cent
andcash
15 earnings
per cent for first
without going into housing stress:
home following
buyers in occupations,
housing stress.
carers, in the following summary of research commissioned from the National Centre
°° child
These figures
are revealed
cleaners
andModelling
laundry workers,
for Social°°and Economic
(NATSEM) on housing stress in Australia.
hospitality
workers,
°°
NATSEM’s figures
are
the Australian Bureau of Statistic’s Household Income and Income
andderived
securityfrom
officers,
°° prison
Distribution,
Australia, 2009-10, and calculate rates of housing stress defined as households on the
human resources and training professionals,
°° per
lowest 40
cent of equivalised household incomes who spend more than 30 per cent of their income on
° plumbers,
housing °costs.
°° construction and mining labourers,
This 30/40 measure
is used
becauseand
it ismechanics,
householdsand
on lower incomes who, when spending more than
electricians
°° automotive
30 per cent
of their income on housing, face difficulties meeting the other basic costs of living.
°° real estate sales agents.
The•report
breaks down
acrossloan
eachinstate
by tenureTerritory
type1. The
dataabsorb
has shown
some
Repayments
on thehousing
averagestress
first home
the Northern
would
at least
half of
surprising
results:
the average income of child carers and cleaners and laundry workers.
• with
firsthomebuyersinMelbournearemorelikelytoexperiencehousing
Stress
renting
stress than those in Sydney
• Median rents for houses and units in Darwin were unaffordable for the average incomes of all
occupations in this report without going into housing stress.
• CommonwealthRentAssistance(CRA)recipientsinAdelaidehadthe
• Of all capital cities in Australia, only Brisbane had a higher number of occupations than Darwin
where
50 per
centoforrental
more ofstress
the average cash earnings was required to pay the median rent for a
highest
rates
house. These occupations included:
• unlikelyopponentsHobartandSydneywerebattlingitoutforcities
°° child care,
°° cleaners and laundry workers,
thatputthetightestsqueezeonrenters(however,whileHobarthasthe
°° hospitality,
highest
rate of renters in housing stress at 33 per cent, Sydney has by far
°° prisons and security officers,
the
highestresources
numberand
attraining,
over 100,000 households)
°° human
°° plumbing and construction, and
The following
data paints a picture of housing stress and the kinds of obstacles different households face
°° mining.
in today’s
housing
market
across
eachand
state
in Australia.
• Of these, child
carers,
cleaners
laundry
workers and hospitality workers in Darwin cannot afford
the median rent for a unit without spending at least 50 per cent of income on rent.
1
Unfortunately the report cannot provide housing stress numbers for the Australian Capital Territory and Northern Territory as data on
the territories is reported together.
DEFAULTING COSTS
ON THE AUSTRALIAN
DOES FULLTIME
WORK GUARANTEE
ACCESS
TO HOUSING?
HOUSING
THROUGHDREAM:
THE ROOF:
AUSTRALIA’S
HOUSING
STRESS
HousingStressed.org.au
|
19
2