The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Housing Affordability

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Affordability nationwide improved in the five years between 2011 and 2016 – that’s one of the more interesting facts to emerge from the 2016 Census data. 
An analysis by population analysts profile.id finds that the median mortgage payment in 2011 was $1,800 per month, but in 2016 it was $1,755. Over the same period the median household income increased from $5,330 to $6,205 per month. 
Of course, these are national average figures and they conceal myriad differences among the various states and cities. The biggest improvements in affordability, in terms of the reduction in mortgage payments, occurred in Queensland and the ACT. 
But there was even a small improvement in New South Wales, notwithstanding the big price rises in Sydney. 
Unsurprisingly, the biggest single factor in the reduction in mortgage payments was the decrease in interest rates. In 2011, the official cash rate was 4.5 percent and by 2016 it was 1.5 percent. Glenn “the Census expert” at profile.id says: “While the banks have passed on less and less of these cuts, it’s certainly the case that mortgage interest rates being paid by home owners in the past five years have reduced.” 
Perhaps the most startling fact is that the median mortgage payment for the Greater Sydney area was the same in 2016 as it was in 2011. And in Melbourne the median mortgage payment reduced slightly. 
The analysis examined mortgage payments for people aged between 18 and 34 who have a mortgage and don’t live at home with their parents – i.e. looking at the profile most likely to include first-time buyers. This is where the improvement in affordability was actually the highest, in terms of the reduction in median mortgage payments between 2011 and 2016. 
In the ACT, for example, median monthly payments dropped from $2,460 to $2,140, while in Queensland they fell from $2,165 to $1,958. Even in NSW, the median mortgage payment for this demographic dropped from $2,182 to $2,129. 
As Glenn points out: “There are very large falls in mortgages in the ACT ($320/month) and Queensland ($207/month). But even in Sydney and Melbourne, which have seen rapid escalation of housing prices, there have been modest declines in what 18-34 year olds are actually paying on their mortgages when they have them. 
“So in fact, a larger part of the decline (in mortgage payments) is in this key group. Probably because they have the larger mortgages and are more affected by changes in interest rates. So, while we have seen that children are delaying leaving home longer (though not much longer), once they do leave home they are actually paying less to buy a house.” 
These figures put another perspective on the general issue of housing affordability. 
But here’s the thing: every day the Hotspotting team scours media sources for information on residential real estate and, to date, we haven’t found any coverage of this very thorough and professional analysis of the affordability situation. 
No newspaper or other media outlet has run this story. Why not? Because it doesn’t suit the pre-conceived storyline, the much-beloved theme of everyone being priced out of the market. 
Another reflection of media bias on this subject came earlier in the year when one of the major affordability indexes published the latest findings. There were two scenarios: in annual terms, affordability had improved in most states and territories, but comparing the latest quarter to the previous quarter, affordability had declined in most states and territories. 
Every media outlet which ran an article in this report focused on the quarter-to-quarter deterioration and totally ignored the annual improvement. 
Media has created a “crisis” by selectively using data to support the favoured theme which says no one can afford to buy any more. It’s obviously rubbish but that’s what they keep telling us – and so when someone runs a survey on the issue, a majority of citizens say they believe young people are priced out of the market everywhere. 
It’s sad how dishonest our media is and also sad how easily people are deluded by it. 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
 
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terryryder-YECXbqmri2

Affordability actually improving in terms of mortgage payments: Terry Ryder

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The Federal Government wants to encourage retirees to downsize from their big family homes.
It is part of Treasurer Scott Morrison's budget package to improve housing affordability with the draft legislation allowing Australians aged over 65 to make an exempt contribution to their superannuation from the sale proceeds.
The Government's aim is to free up the stock of larger houses for young families.
The superannuation break will apply when the elderly move into a smaller home that that "better suits their needs," or on entering the rental market, relocating to an aged-care facility or moving into their adult children’s homes.
The special voluntary superannuation contribution rules could see couples contributing up to $600,000 from the proceeds of selling their home if it has been home for the past decade.
The measure will not commence until 1 July 2018 and as the Age Pension means test will continue to apply, the measure are not expected to be taken up by too many.
The Government has released consultation draft legislation - and here are six important takeouts. 
1) What kind of homes would this apply to? 
The sale of any dwelling – other than a caravan, houseboat or mobile home – could qualify. 
2) Must the home be my main residence?
Yes, but only for some portion of your ownership period. 
3) Could I sell now and contribute after 1 July 2018? 
No. It is set to only apply where the contract of sale is entered into on or after 1 July 2018. 
4) Must my spouse have been on the title to make a contribution? 
No. The consultation draft provides that either you or your spouse must have owned the home. 
5) How much could I contribute?
The maximum downsizer contribution would be $300,000 per contributor. However, the downsizer contribution must come from the proceeds of the sale. So, if a couple sold their home for $500,000, their combined downsizer contributions would be limited to $500,000. 
6) What if I don’t have a super account? 
There is no restriction preventing you from opening a superannuation account to make a downsizer contribution.
I think there is no doubt that the reluctant downsizer demographic has created roadblocks for the orderly flow of home listings across more established areas of Sydney.
Tightly held homes means prices keep going up quicker than normal.
But their reluctance to move isn't solely due to the desire to keep the happy family memories intact.
They really want housing options such as single level patio garden homes that are few and far between in most neighbourhoods.
Additionally they are not that keen on paying stamp duty on any downsized property purchase.
Treasurer Scott Morrison needs to have Premier Gladys Berejiklian introduce a reduced or postponed stamp duty initiative to really make any progress on downsizers.
This article first appeared in the Daily Telegraph.
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jchancellor-FAypfDUnLy

Government to free up stock of larger houses for young families

<html><body>
<img src="https://counter.theconversation.edu.au/content/80965/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A new report by the Australian Housing and Urban Research Institute (AHURI) reveals, for the first time, the extent of housing need in Australia.
An estimated 1.3 million households are in a state of housing need, whether unable to access market housing or in a position of rental stress. This figure is predicted to rise to 1.7 million by 2025.
To put it in perspective, 1.3 million is around 14% of Australian households. This national total includes 373,000 households in New South Wales, where the number is expected to increase by 80% to more than 670,000 by 2025 under the baseline economic assumptions of the modelling.
The first graph below shows the average annual level of housing need to 2025. The second, showing the percentages of households, permits a direct comparison by state. NSW and Queensland are in the worst position. The ACT is calculated to have the lowest proportional level of need.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%2011.17.48%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%2011.17.48%20AM.png" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%2011.18.59%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%2011.18.59%20AM.png" alt="">
What does this mean for households in need?
Housing need is defined as:
… the aggregate of households unable to access market-provided housing or requiring some form of housing assistance in the private rental market to avoid a position of rental stress.
This includes potential households that are unable to form because their income is too low to afford to rent in the private rental market. These households would traditionally rely on public housing and community housing to meet their needs. However, more and more are being forced into the private rental market, paying housing costs they are unable to afford without making significant sacrifices.
To 2025, on average 190,000 potential households in NSW will be unable to access market housing in a given year. The graph below is the most revealing as it illustrates the gap between affordable housing demand and supply.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%2011.19.54%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%2011.19.54%20AM.png" alt="">
The lack of social housing and subsidised rental housing prevents such households forming under affordable conditions. Many will manage to form but will have to spend well over 30% of their income on housing costs to do so, putting them in a position of financial stress.
The results also reveal the increasing pressure the affordable housing shortfall places on the housing assistance budget, notably Commonwealth Rent Assistance.
The absence of a significant new supply of affordable housing – there has been no large-scale program since the National Rental Affordability Scheme (NRAS) began in 2008 – has left state governments trying to find ways to plug the affordability gap.
Responses have been largely on the demand side, such as first home buyer concessions recently announced in NSW. But such incentives are no use for low-income households. To help them, intervention needs to be on the supply side.
How does Australia compare?
The AHURI research built on ideas emerging from research into housing need in the UK. It revealed interesting differences between the two countries.
UK government policy prior to 2010 emphasised the role of the planning system in helping to substantially increase affordable housing supply. This reflected evidence from England and Scotland that found a link between low levels of new housing supply and higher and rising house prices.
In this project, we found plenty of evidence of deteriorating housing affordability in Australia. But we did not find a particularly strong relationship between housing supply and  price growth. This might reflect how other drivers of deteriorating housing affordability are more important in Australia – such as tax incentives for investors.
These findings suggest we need to look more closely at how new supply and investment demand interact, and in what circumstances boosting new supply is likely to improve affordability.
From our analysis of individuals’ labour market circumstances and incomes, it was also clear that the Australian workforce has not escaped the erosion of secure, full-time employment opportunities seen in other countries.
The combination of widespread insecure, part-time employment opportunities, high housing costs and low supply of rented social housing means the housing of many working Australians is extremely precarious.
How was the research done?
The research modelled housing need at the state and territory level to 2025 using an underlying set of economic assumptions and interrelated models on household formation, housing markets, labour markets and tenure choice.
The models were underpinned by data from the Housing, Income and Labour Dynamics in Australia (HILDA) Survey, the Australian Bureau of Statistics (ABS) and house price and rent data.
This research delivers, for the first time in Australia, a consistent and replicable methodology for assessing housing need. It can be used to inform resource allocation and simulate the impact of policy decisions on housing outcomes.
The intention is to further develop the model to assess housing need at the level of local government areas.
So, what are the policy implications?
The scale of the affordable housing shortfall requires major action from federal and state governments.
NRAS had its problems but at least delivered a supply of below-market housing. Australia cannot rely on the private sector to deliver housing for low-income households without some form of government subsidy as it is simply not profitable to do so.
The question is what government is going to be prepared, or even able, to spend big to close the affordable housing supply gap?
<a href="https://theconversation.com/profiles/steven-rowley-201914">Steven Rowley </a>is Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin University.
<a href="https://theconversation.com/profiles/chris-leishman-391783">Chris Leishman</a> is Professor of Housing Economics, University of Adelaide.
Both are authors for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Affordable housing shortfall leaves 1.3m households in need and rising – study

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New research estimates 1.3 million Australian households are in housing needs, according to the AHURI, with that figure expected to rise to 1.7 million households by 2025.
According to the AHURI  ‘Housing need’ covers existing households that need support to avoid paying more than 30 per cent of their income in housing costs, as well as an estimate of the number of households that would likely have formed if not for housing affordability constraints.
Research lead, Associate Professor Steven Rowley from Curtin University, said housing need is set to rise in most states and territories by 2025. 
"Our findings show the scale of affordable housing necessary to meet housing need and the challenge faced by state and local governments to deliver such housing," he said.
"In NSW, the number of households estimated to be in need by 2025 rises from 373,000 to 677,500 while in Victoria, the number will approach half a million."
The research, ‘Modelling housing need in Australia to 2025’, was undertaken by researchers from Curtin University and The University of Adelaide and produced a replicable model for housing need assessment. It developed a simulation based around five interrelated models of the housing market, labour market, labour market earnings, household formation and tenure choice. It utilised HILDA, ABS and house price data. 
It estimates that in Australia today 527,400 households are unable to enter market housing and a further 806,100 households require some form of housing assistance to make their housing affordable, which equates to around 15 percent of all current Australian households.
 
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1.3 million Australian households in housing need: AHURI

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<img src="https://counter.theconversation.edu.au/content/81619/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Home ownership among young people is declining, as mortgage debt almost doubles for the same age group, results from the Household Income and Labour Dynamics in Australia (HILDA) survey show. It also shows young people are living with their parents longer. 
The Melbourne Institute of Applied Economic and Social Research undertakes the survey every year. It’s Australia’s only nationally representative household longitudinal study, and has followed the same individuals and households since 2001.
The survey shows the rate of home ownership among 18 to 39 year olds declined from 36% in 2002 to 25% in 2014. In the same age group, the decline in home ownership has been largest for families with dependent children, falling from 56% to 39%. 
<a href="https://www.propertyobserver.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.04.42%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.04.42%20AM.png" alt="">
Even for those in this group who manage to buy a home, mortgage debt has risen dramatically. In 2002, 89% of home owners in this age range had mortgage debt. By 2014 this had risen to 94%. 
More significantly, the average home debt rose considerably. Expressed in December 2015 prices, average home debt grew from about A$169,000 in 2002 to about A$337,000 in 2014. Low interest rates since the global financial crisis have meant mortgage repayments for these home owners have remained manageable, but this group is very vulnerable to rate rises. 
<a href="https://www.propertyobserver.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.05.55%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.05.55%20AM.png" alt="">
Detailed wealth data in the survey, collected every four years since 2002, show this increase in debt and decrease in ownership are part of a trend in the wider population. HILDA shows 65% of households were in owner-occupied dwellings in 2015, down from 69% in 2001.
In fact, the decline in home ownership has been greater than the decline in owner-occupied households. This is largely because adult children are living with their parents for longer.
For example, the HILDA data show that the proportion of women aged 22 to 25 living with their parents rose from 28% in 2001 to 48% in 2015. For men this proportion rose from 42% to 60%.
Among those who manage to access the housing market, the data shows that the growth in home debt is not simply because they are borrowing more to purchase their home. A surprisingly high proportion of young home owners (between 30% and 40%) actually increase their debt from one year to the next, despite most of them remaining in the same home. Even over a four-year period - for example, from 2010 to 2014 - at least 40% of young home owners with a mortgage increase their nominal home debt.
<a href="https://www.propertyobserver.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.06.50%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.06.50%20AM.png" alt="">
The proportion of people with home debt that exceeds the value of their home – that is, negative equity – has also risen. In 2002, 2.4% of people had negative equity in their home; in 2014, 3.9% had negative equity. This is a relatively small proportion, but this could change as even small decreases in house prices will result in substantial increases in the prevalence of negative equity.
<h2>How this changes with location, income and profession</h2>
In 2014, less than 20% of Sydneysiders aged 18 to 39 were home owners, compared with 36% or more in the ACT, urban Northern Territory and non-urban regions of Australia. To a significant extent this reflects differences across regions in house prices. 
Sydney and Melbourne have particularly high house prices, while non-urban areas generally have comparatively low house prices. Regional differences in the incomes of 18 to 39 year olds also play a role. 
Those with the highest home-ownership rates are professionals and, to a lesser extent, managers. They experienced relatively little decline in home ownership. 
For workers in other occupations, home ownership has declined substantially. In 2014 home ownership was especially rare among community and personal services workers, sales workers and labourers.
This decline represents profound social change among this age group, where renting is increasingly becoming the dominant form of housing. In 2002, 61% of people aged 35 to 39 were home owners – a clear majority of their age group. By 2014, this proportion had fallen to 48%.
The changing housing situation of young adults is part of a broader change in the distribution of wealth in Australia. The HILDA Survey shows that differences in average wealth by age have grown since 2002. For example, in 2002, median net wealth of those aged 65 and over was 2.8 times that of people aged 25 to 34. In 2014, this ratio had increased to 4.5. 
<a href="https://www.propertyobserver.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.07.55%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/02/Screen%20Shot%202017-08-02%20at%209.07.55%20AM.png" alt="">
The decline in home ownership among young adults and this broader trend in wealth have implications for their long-term economic wellbeing and indeed for the retirement income system. Even if house price growth moderates and many of those currently aged under 40 ultimately enter the housing market, it’s likely that a rising proportion will not have paid off the mortgage by the time they retire. It may be that many will resort to drawing on superannuation balances to repay home loans, in turn increasing demands on the Age Pension.
<a href="https://theconversation.com/profiles/roger-wilkins-95906" target="_blank">Roger Wilkins</a> is Professorial Research Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, University of Melbourne and author for The Conversation.
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Home ownership falling, debts rising – it’s looking grim for the under 40

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GUEST OBSERVER
The housing market is gradually responding to higher mortgage rates, tighter credit policies and affordability challenges, with the quarterly trend in capital gains moderating relative to early 2017.
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The July 2017 CoreLogic Home Value Index results recorded a 1.5% rise in dwelling values across the combined capital cities for the month.  Most individual capital cities recorded a rise, however, a 3.1% gain in Melbourne was a significant driver for the strong monthly result across the combined capitals.
The latest housing market results highlight the diversity of housing market conditions, with dwelling values down over the month in Brisbane (-0.6%), Perth (-1.3%) and Darwin (-1.2%).
<h3>Index results as at July 31, 2017</h3>
Click to enlarge
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/02/2017-08-01--indices.jpg" alt="">
The recent bounce in capital gains may be partially due to a recovery from the seasonal slump in values recorded in April and May. However, other factors, such as stamp duty concessions for first home buyers in New South Wales and Victoria, may also be having a positive impact on market demand.
It’s still too early to measure the effect of first home buyer incentives, which went live on July 1st. However historically, the first time buyer segment has been very responsive to stimulus measures.
Despite the higher month-on-month capital gains in June and July, the quarterly trend rate of growth has clearly reduced.  The rolling quarterly pace of capital gains across the combined capitals has fallen from 3.6% in February earlier this year to reach 2.2% at the end of July. 
The slowdown in growth conditions is most evident across the hottest markets, with the quarterly growth trend reducing from 5.0% in Sydney earlier this year to 2.2% at the end of last month.  Melbourne growth conditions have also slowed, though to a lesser extent, with growth easing from a 2017 quarterly peak of 5.5% to 4.2%.
The divergence in growth rates between Sydney and Melbourne is also evident in auction clearance rates.  Sydney’s clearance rate has been below 70% for seven of the past eight weeks, while Melbourne auction clearance rates have consistently held around the mid 70% range. 
Melbourne appears to be benefitting from consistently high population growth which is creating strong demand for housing, as well as consistently high jobs growth and more affordable housing options relative to Sydney.
At the other end of the growth spectrum, Perth and Darwin have continued to see dwelling values slip lower over the month, taking the cumulative decline to 10.2% in Perth and 14.5% in Darwin since both markets peaked in 2014.
The ease in the rate of decline has been most visible in Perth, providing a signal that the Western Australian capital may be approaching the bottom of the downturn; listing numbers have been falling across Perth which is a positive sign of improving conditions, and transaction numbers have found a new floor at around 2,500 sales per month.
TIM LAWLESS heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
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Housing market is gradually responding to higher mortgage rates

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GUEST OBSERVER
Over the past decade, the government has attempted to tackle housing affordability by implementing countless measures, from the removal of stamp duty taxes and first home owner grants, through to penalising foreign investment.
Yet, the Victorian Planning Authority (VPA) predicted the continuation of the quarter century decline of home ownership rates, confirmed by the 2016 Census.
So now the question is, why can’t we just get it right?
The answer is not as complicated as we think. The issue is not disposable income or foreign investment. Rather than a continued focus on trying to restrict demand, I believe in the answer lies in unlocking supply.
There are three key factors holding back our industry: restrictive and time-consuming planning regulations, a severe undersupply of construction resources and the absence of infrastructure investment in the key growth corridors of Victoria. Collectively, these factors are stifling developers’ ability to bring stock to the market to meet demand.
According to industry website Sourceable, Melbourne development approvals take an average of nine months. As a result, developers tie up resources and capital in projects for extended periods and are unable to deliver the supply of housing needed to meet the state’s growing demand.
However, creating a planning system that is it up to speed with this fast-paced industry is only one piece of the puzzle. The demand for contractors and resources is skyrocketing. Contractors for major works are being shared amongst a huge number of competing developers, and those same contractors are often tendering for major infrastructure projects, of which there are a number currently underway.
The tug-of-war battle for resources is causing increased delays and higher construction costs.
These delays not only impact the final cost, they also immobilise developers who are unable to work on more projects concurrently.
In the 2017 State of Land Report by the Urban Development Institute of Australia (UDIA) it states that “57,000 new lots were released in 2016, a 10% increase since 2015” and yet the demand for these lots still outweighs supply. Buyers continue to camp out for land releases, sometimes for days at a time, afraid that if not, they will, yet again, miss out on the type of block or location that suits their needs.
Collectively, the delay caused by these issues directly correlates to holding costs for developers. Every month that a project is delayed the corresponding holding cost increases, attributed to high construction costs, mounting land taxes, council rates, interest on loans and more.
In a study by Urbis commissioned by the Property Council, it was found that these delays can add anywhere from $10,253 to $36,779 to the average cost of a block of land. A cost that must either be absorbed by the developer, or passed on to the purchaser.
The key concern is that this problem is on the rise. The Australian Bureau of Statistics estimate that the population of Australia will grow from 23 million to between 36.8 million and 48.53 million by 2061. According to the UDIA, due to this growing population, Victoria alone needs to deliver in excess of 55,000 new homes per year.
Looking beyond the limitation of the current planning process and undersupply of resources, the industry is also crippled by a lack of infrastructure investment in Victoria’s growth corridors. Danni Addison, Victorian CEO of the Urban Development Institute of Australia (UDIA) says that investment in infrastructure is at the heart of housing affordability and that we must be “focusing on investing in and delivering the roads and services that will make these areas more accessible to employment, amenities, and services”.
In the Interim Report released by the Victorian Population Policy Taskforce released in June 2017, it was revealed that 77 per cent of Victoria’s population live in Melbourne and that if Victoria does not move “from a city state into a state of cities”, this growth is simply unsustainable.
The 2016 census by the Australian Bureau of Statistics states that Victoria noted the most rapid growth in its history, recording a 10.7 per cent increase in population since 2011.
By working with industry bodies like the UDIA, Property Council of Australia (PCA) and others, we can bring about real positive change. Industry peers must support industry bodies to lobby for changes at a state and national level.
The recent government measures are simply not enough to facilitate this enormous increase in delivery. In fact, many of the changes will only lead to an increase in demand, pushing out development timelines and supply even further.
If the government is serious about enforcing change that will have a tangible effect on affordability and supply, it needs to minimise delays and red tape and provide a commitment to drive additional resources to streamline and fast-track the process. Only then can we work cohesively to keep up with the growing demands of Melbourne, Victoria and beyond.
As active industry members, we too are accountable for the housing affordability crisis. It is imperative that we pool our collective research and knowledge to inspire government and lobby for the real, tangible changes our industry needs in order to thrive and keep meeting the evolving needs of Australians across the country. 
 
John C Dwyer is Managing Director, <a href="https://dacland.com.au" target="_blank">Dacland</a>.
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Melbourne housing affordability and why we can't get it right

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A new industry body has been launched to aid government and industry to streamline planning processes, develop effective policy to reduce housing costs and increase housing supply.
The Housing Supply Association was launched by the NSW Minister for Planning and Housing, Anthony Roberts.
Properties will be made available for purchase and rental through the HSA, with caveats placed on sales to first homebuyers to ensure they are not on-sold for profit.
Minister Roberts has welcomed HSA’s commitment to help break the cycle of the spiralling property market, which slams the door on many new first homebuyers and prevents key workers living where they work.
“The NSW Government is committed to working with businesses, organisations and local communities to address housing affordability and those who are most disadvantaged in buying their first home, or renting where they live,” he said.
“I commend the formation of the not-for-profit Housing Supply Association to assist in tackling these challenges and look forward to working hand-in-hand with all participants to break down the barriers for future generations of new home owners and renters and helping key workers to live where they work.”
The HSA will also work with government and industry to secure property exclusively for those who need it most, many properties at potentially 20 – 30% below market value.
Property allocation will also focus on ex- servicemen and women and people with disabilities.
Aras Labutis, HSA Vice President said Australia was at a crossroads in addressing housing affordability for the average wage-earner.
“I am proud to be part of the HSA’s collaboration with government, councils and key stakeholders to deliver the first major positive intervention to address this serious social issue,” he said.
“This is the only holistic, industry-driven solution to deliver real outcomes for first homebuyers and key workers, such as the police, ambos and fire services who look after our communities 24/7.
“The HSA’s purpose is to increase affordable housing supply as part of an industry-wide response to a problem that now desperately needs action, not words.”
"Suitable developments for the HSA’s target market are underway or in the pipeline.
"One major property provider has already committed 20 percent of a new development to the HSA for affordable housing.
“We have consulted those groups facing hardship, and the current housing situation disadvantages many of the most valued members of our community.
“We need to increase supply of housing, and we need to look after those who need it most.
“We have tested our approach with government and the key worker Associations and they like the process.
“I would like to thank the NSW Government for their support and commitment of this important initiative.
“Without the collaboration of industry and support of Minister Roberts and the NSW Government our plans to address this crisis would not be possible.”
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Housing Supply Association formed to tackle housing crisis

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The federal budget measures and state announcements to make housing more affordable seems to be having little impact on single people and the younger generation, a recent survey has found.
Although both NSW and Victoria have abolished stamp duty for first home buyers on properties up to 650,000 and 600,000 respectively, the fact is that home prices in the popular suburbs are almost always above these levels.
Any reduced or full stamp duty for properties exceeding these prices will still be hefty.
With it now taking an average of 8.4 years for a couple to raise the $214,600 deposit required for a median-price house in Sydney, single people in particular, who are having to stump up most of the cash on their own, might continue to struggle to get into the market as the new financial year progresses.
A recent Galaxy Research survey of 1,006 people for debt solutions company Fox Symes found that significantly more single people (27 per cent) say the issue of housing affordability is having a major impact on their life right now compared to couples (15 per cent).
In addition, home ownership continues to worry young people. A large 40 per cent of respondents aged 18 – 24 name it as their biggest financial concern, followed by 29 per cent of those aged 24 – 34, and 21 per cent of Gen X-ers aged 35-49. 
Some 19 per cent of Australians overall are stressed about the issue with the highest percentage (26 per cent) among those in NSW, where housing prices are the most expensive. This was followed by Queensland (17 per cent), Victoria (16 per cent), South Australia (15 per cent) and WA (11 per cent).
“Whilst some new budgetary reforms are now taking place including restrictions on foreign investment, I still think we need to have ongoing discussions regarding housing affordability,” said Fox Symes director Deborah Southon. 
“Nowadays it can be very difficult for people who are on their own to get into the housing market and remain there comfortably. Even if they do manage to scrape up the deposit and take the plunge, they may end up taking on a mortgage they can’t really afford. This could land them in debt if they’re forced to rely on credit cards to help pay for expenses.”
Southon suggested that single people may have into alternative strategies such as buying into the market with a friend or relative, or buying a cheaper investment property whilst continuing to rent in their desired area. 
“We need to continue to create more solutions to address this problem which could only worsen in years to come and lead to financial stress for many. The issue is far from over.”
Earlier this year, an HSBC survey found that home ownership among Australian millennials was among the lowest, with less than a third (28 percent) owning one. A majority cited high property prices as a major barrier.
The survey also found that nearly one in 10 Australians (8 per cent) also say uncertainty over whether banks will raise interest rates is making them nervous. New levies set for big banks could also be passed onto customers in the form of increased banking charges.
Other costs currently stressing people out which could escalate are electricity and gas costs (17 per cent) - set to rise with big providers AGL, EnergyAustralia and Origin Energy poised to hike prices up to 20 per cent extra, and education (5 per cent) which may result in fee increases for some schools under Gonski 2.0. 
Private health insurance costs (23 per cent), grocery prices (11 per cent) and childcare fees (4 per cent) are also causing headaches for Aussies.
“Unfortunately, debt is the inevitable outcome when we spend more than we earn and with so many costs on the rise it’s a very easy trap to fall into,” Southon says. “If we want to live within our means then we need to budget and consistently monitor what we spend – now more than ever.” 
Galaxy Research conducted the online survey amongst a nationally representative sample of 1,006 Australians aged 18 years and older covering: NSW, ACT, VIC, TAS, QLD, SA and WA.
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Budget moves fail to ease housing affordability concerns for singles, young 

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GUEST OBSERVER
The great Australia dream of owning your own home is still alive despite the various problems plaguing housing affordability, new Census data shows. Even though the overall home ownership trend remains strong, it’s masking other issues.
The latest 2016 Census data assesses what the national home ownership and rental rates are and how these vary location. It also gives us a picture of mortgage and rental costs.
Comparing home ownership rates since the 2011 Census, there’s a slow but steady decline in home ownership rates overall - down by 2.9% from 64.9% of all Australian households in 2006, to 62.0% in 2016. However, 7.4% of households did not state their housing tenure in the 2016 Census. This accounts for some of the variation in reported rates of home ownership decline. 
This contraction is nowhere of the scale of equivalent falls in home ownership in the US and UK and New Zealand over the same period. 
<a href="https://www.propertyobserver.com.au/images/2017/06/29/Screen%20Shot%202017-06-28%20at%208.14.47%20AM.png" target="_blank">Click to enlarge</a>
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What’s more interesting than the overall trend, is the greater decline in outright home ownership, involving no mortgage debt, from 31.0% to 29.6% between 2011 and 2016. There’s also a lesser decline in home owners who are purchasing with mortgage debt 33.3% in 2011 compared with 32.4% in 2016. 
The opportunity households now have to borrow against their mortgage loans for spending undoubtedly accounts for some of this change. Also contributing to this is home purchasers are less likely to reach retirement age with no remaining mortgage debt, in the same numbers as previous eras.
Another aspect of housing affordability is masked by these numbers - the wide variation in being able to purchase a home according to age and income. Recent evidence indicates would-be-home-owners try various means including very high mortgage debt and moving to outer urban locations away from employment and into smaller dwellings, to be able to buy a house. Some even delay having kids. 
<a href="https://www.propertyobserver.com.au/images/2017/06/29/Screen%20Shot%202017-06-28%20at%208.18.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/29/Screen%20Shot%202017-06-28%20at%208.18.03%20AM.png" alt="">
Census figures show that for people wanting to purchase a home, a change in state or city location may be an option. According to the data Darwin was the most expensive city to buy in, whereas Hobart was the cheapest for home purchasers.
For households across the income spectrum, 7.2% of purchasers are paying more than 30% of their income on mortgage costs, the data shows. This figure is likely to be far higher among the lowest income (40% of households) for whom such costs place them in housing poverty.
Given the national obsession with investment in private rental, it’s no surprise that the proportion of all Australian households now renting has also increased. Census 2016 results show the private rental sector grew in size, from 20.2% in 2006, to 22.0% in 2011 and to 23.6% in 2016. In 2016 a total of 2,089,633 Australian households rented privately, either from real estate agents or private landlords.
The growth of the private rental sector largely reflects the high costs of home purchase. Many households who rent have a relative lack of security and control over rental increases.
<a href="https://www.propertyobserver.com.au/images/2017/06/29/Screen%20Shot%202017-06-28%20at%208.19.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/29/Screen%20Shot%202017-06-28%20at%208.19.36%20AM.png" alt="">
For those unable to pay rent in the private market, social housing is likely to provide little relief. Census data shows overall rates of social housing declining from 4.7% in 2006 to 4.0% in 2016. In this context, the growth in rates of homelessness in the last decade is perhaps not surprising.
For Indigenous Australians, the housing picture is different. Census 2016 data show among households in which at least one resident is Aboriginal and/or Torres Strait Islander, 12.2% are outright owners, 25.9% are purchaser owners, 32.4% are renting privately. Around a fifth of households, 21.5%, live in social housing, reflecting targeted social housing programs in metropolitan, rural and regional areas.
Overall, home ownership has not changed as dramatically in the last decade, as some would have anticipated. However, it’s likely with the labour market being what it is and the adaptations people are making to try and buy a home, there may be longer-term problems to be seen in future.
Excessive household debt, polarisation of cities into low and high income earning areas and deepening family housing constraints indicate these Census figures likely mask bigger problems. This may translate over time into a more costly social problem, as increasing proportions of households require housing assistance of some form. Australian society could become even more divided on the basis of housing wealth and opportunity, if these trends continue, as we expect they will.
<a href="https://theconversation.com/profiles/wendy-stone-9804" target="_blank">Wendy Stone</a> is Associate Professor, Centre for Urban Transitions, Swinburne University of Technology.
<a href="https://theconversation.com/profiles/kath-hulse-228874" target="_blank">Kath Hulse</a> is Research Professor, Centre for Urban Transitions, Swinburne University of Technology.
<a href="https://theconversation.com/profiles/margaret-reynolds-324336" target="_blank">Margaret Reynolds</a> is Researcher, Centre for Urban Transitions, Swinburne University of Technology.
<a href="https://theconversation.com/profiles/terry-burke-1268" target="_blank">Terry Burke</a> is Professor of Housing Studies, Centre for Urban Transitions, Swinburne University of Technology.
All are authors for The Conversation.
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