Housing Affordability Crisis Grips New South Wales, Straining Single Earners

Housing affordability in Australia, especially in New South Wales (NSW), has reached critical levels for single individuals earning average wages. According to analysis by the Australian Bureau of Statistics (ABS) and Mozo, a single person in NSW would need to allocate a staggering 82% of their monthly earnings to afford the average mortgage. This figure far surpasses the typical affordability benchmark of 30%.

The national average dwelling price demands 84% of monthly post-tax earnings to service a mortgage, reflecting a nationwide trend of worsening affordability. Since the early 1980s, the price-to-income ratio has doubled, signaling a significant barrier for single earners aspiring to own property.

Although there was a slight improvement in affordability between 2017 and 2020, conditions deteriorated again in early 2021. This downturn has made it exceedingly difficult for single average-income earners to enter the property market without substantial savings or financial assistance.

Increasingly, homeownership has become attainable mainly for dual-income households, highlighting the stark challenges faced by singles. The situation underscores the need for policy interventions to address housing affordability issues and provide viable pathways to homeownership for all Australians, regardless of their income or household structure.



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Article Title: Just how unaffordable is housing in Australia? For one group, it’s impossible
Retrieved from 9news.com.au
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