The most recent housing affordability figures paint a bleak picture for young Australians hoping to enter the housing market any time soon.
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According to figures released by the Domain Group, which is owned by Fairfax Media, the publisher of The Examiner, show that Sydney’s median house price has skyrocketed 10 per cent in the December quarter to a record figure of $1.1 million.
This means that real estate in Sydney is now $300,000 more than the next highest capital city in the country.
Tasmania has been somewhat immune to the housing bubble experienced on the mainland.
Our housing price increases have up until now been more moderate.
Around the country, a stronger local market in Melbourne saw the median house price jump to a new record of just over $795,000. In Canberra, according to Domain, house prices jumped 5.6 per cent over the quarter, Adelaide was up 1 per cent, while Hobart’s 6.2 per cent gain for the quarter – the highest gain in the country – lifted the median house price to $382,888.
Those increases also affected rentals, with Hobart surging 7.6 per cent in the quarter to $355 a week.
That’s good news for landlords, but not-so welcome if you’re looking to break into the rental market. It’s even worse if you’re one of the thousands of Tasmanians living on average to below-average wages.
The issue of undersupply in the public housing sector has been well documented, with a desperate need of state and federal funding.
A Productivity Commission review of government services found there are 10,000-less publicly owned houses now than five years ago nationally. Tasmania recorded the largest decline over that period – a whopping 57 per cent.
Tasmania already has major issues with homelessness. A sharp decline in available public housing for low-income earners and the unemployed is disastrous.
What’s more, Tasmanians haven't fared well in terms of government assistance for social housing.
In 2015-16, Tasmanian expenditure was just $122.5 million, down from $265.8 million in 2014-15 and $525.4 million in 2013-14, according to the report.
With all government budgets under increasing pressure, any new or current housing strategy will come under greater scrutiny.
