Cost of housing – different but same

Cost of housing – different but same

Posted on Wednesday, August 28 2013 at 4:38 PM

It might seem like house prices rise and rise but those with a mortgage today still spend the same proportion of their income on housing costs as they did in 1994 and 1995.

The Australian Bureau of
Statistics has released a Living Conditions report on the proportion of
income spent on house costs and says the proportion remains at 20 per cent.

The report also found lower
income households had lower housing costs per week on average, but these costs
represented a greater proportion of household income.

Lower income households with
a mortgage paid $314 per week on average, or 26 per cent of their gross weekly
income on housing costs. But landlords seem to be winning in cheaper areas,
with lower income households renting from a private landlord paying about $295
per week, which represents 30 per cent of gross weekly income.

Since 1994 to 1995, the proportion of households that owned their home
outright dropped from 42 to 31 per cent. Those with a mortgage increased from
30 to 37 per cent and households renting have increased from 18 to 25 per cent.

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