Housing Affordability in NSW [infographic]

Monday, January 30, 2017

We’ve all heard about the difficulty of buying into the housing market in recent times and the subsequent decreases in home ownership rates (in NSW, from 68% in 2004 to 63% in 2014). With less people able to afford a home in the current market, there have been increases in the numbers of people looking to rent in New South Wales, and particularly Sydney.

We were delighted to be commissioned by Churches Housing and Shelter NSW to uncover the story of rental unaffordability in New South Wales. Through this research, we discovered that finding an available, affordable rental property is becoming increasingly difficult, particularly for those in the bottom 20% of income earners.

The decrease in the availability of rental properties over the last decade or so, has been influenced by a number of factors. Rental prices have increased due to the increased numbers of people looking to rent, and in past decades, rental prices have grown faster than income.

The infographic particularly highlights the difficulties for the bottom 40% of income earners in looking for appropriate rental properties. The term ‘rental stress’ is used to describe those in the bottom 40% who are spending over 30% of their income in housing costs. In 2013-14 NSW had the highest proportion of low income households experiencing rental stress, at 76% (compared to 68% nationally). For these households, rental stress can impact on other areas of life, including health care, schooling, diet and in the worst case can sometimes lead to homelessness. 


The New Australian Dream

Thursday, September 01, 2016


Owning your own four bedroom house on a decent block of land with a big backyard and outdoor swimming pool used to be the quintessential 'Great Australian Dream'. But with rising property prices and increased living costs, that dream is being redefined.

what is the Average Australian Profile?

The average full time annual income in Australia is $80,000, which is bumped up a bit because of high income earners. Even though we are living longer now than a generation ago, the average retirement age is little changed, at 61.5 years.

The cost of housing is up with average rent prices per week at $485/week and the average house price (capital city) is $765,730. In Melbourne it is well above this and in Sydney it is around $1 million. This is where the challenge is for Australians: 40 years ago the average house price was around 5 time’s average earnings and now you can see it is almost 10 times the average annual fulltime earnings.

Other than affordability, what else are Aussies looking for?

Lifestyle is key. People are opting to live in higher density areas for the sake of convenience and location- within close proximity to transport, restaurants – the café culture as it has been called. Our Urban Living Index shows a strong correlation between the most urban/densified suburbs and those with the highest liability ratings.

Australians are opting for a lifestyle of Minimalism - we are 'decluttering' our lives and putting more value on the intangibles like travel. Generation Y aren’t opting for a big home with garages to store all their stuff but more of a focus on the easy-livability of apartment living. Indeed many baby boomers are downsizing from their larger homes in the suburbs to this style of living too.

Renting, as opposed to buying, what some of the benefits?

The ability to change locations easily is well regarded – the average Australian renter stays just 1.8 years per home. Our research shows that 1 in 3 renters are actually 'choice renters' and they choose to rent for lifestyle reasons, not primarily for affordability reasons. These choice renters are twice more likely to be living in medium and high density housing than the average Australian and they are almost 10 years younger than the average Australian. The ability to upsize and downsize easily and the flexibility to travel for extended periods of time is a driver for them. ‘Rentvesting’ is also becoming a ‘thing’. This is where people choose to rent in an area they like, but buy somewhere more affordable and use this as an investment

Generation Y are struggling to attain the Great Australian Dream – are they going to be ok?

There is a challenge emerging of "generational inequity" as shown by this infographic:

Gen Y’s have the least wealth of the working generations and their proportion of Australia’s wealth is less than half their demographic share, while the Baby Boomers who are a quarter of the population, own more than half of Australia’s wealth. (More information on this topic can be found here)

This is why Gen Y is reinventing the Aussie Dream and while they do still like the idea of owning something of their own, it is not just the big home with the back yard in the suburbs. But many in this generation will be absolutely fine thanks to the massive intergenerational wealth transfer set to happen in the next 20 years as those aged over 65 transfer much of their total wealth of $2.5 trillion.

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

VET energy resource society trends demographic transformations meetings Christmas presents megatrends infographic marketing identity omnibus social researchers Skilling Australian communities safe social researcher house prices engage #censusfail NBRS world youth day wealth distribution urban taskforce speakers stay home sydney hills balance cloudy days trends analyst manly wages case study dare to dream ABS university degree Christmas season sydney event friends January 26th education children population map interactive baby boom census TAS youth market research nfp train facts unaffordable participants housing rental stress educhat sentiments australia criminal media JOMO entrepreneur Queensland families communication Wellington researcher business performance the australian dream brand experience Merry Christmas sunny days online shopping community engagement wedding life workforce apartment keynote speaker 24,000,000 graphs rule keeper Kirsten Brewer cancelling plans stats hopes GPO staying in thought leadership tuesday changing face of sydney schools students vegetarian area monarchy Sydney keynote speaker Australia Day 2017 blaxland award domestic celebration DIY ideas logan digital emerging trends sydneysiders house cold budget new york times thrive politics states brands government change learn year 12 mateship ipswich Births royal family WA debt Australian Families wealth and income distribution cancelling event forum bureau office opening shopping charity the hills publication sector wide Financial Planning Week crows nest optimistic equip in the media The ABC of XYZ Sydney annual income weekly earnings futurist NT TDE financial future sydney metro investor snapshot going out new office debate christian Hornsby Shire Council community wealth and income retirement poker master Australian Trends Queensland: QLD high density analysis transport cancel plans mccrindle Hills Shire Council aged care students child care Charlotte internet food earning schools car 1994 Duchess of Cambridge 23 million skills summer entrepreneurial real jobs of the future Adelaide baby high school national wealth Scouts socialising cartodb overcast australian communities trends report young australians work-life Channel Seven Do It Yourself responsive global generations forecasting growing population princess charlotte divorce couple media activity income FPA wolloomooloo consumerism census fail social trends community event urban future proof huffington post McCrindle Speakers ease of travel VIC potts point emerging technologies crime System's Architect repayments school household pharmacies forecast 10 years VET sector trends of 2016 alpha future happiness collaborative social research baby names report demographic trends Gen X sustainable trends of 2017 slideshare property google for education population milestone teachers average aussie Australia Day survey pyrmont lifestyle NEETs mythbusters technology rent ashley fell Channel 7 Tasmania 40 million rain leadership workshop public speaker city builders brisbane social commentator litter James Ward personal growth student social impact parents contiki Western Australia vegemite Canberra work mates Aussies typical australian Northern Beaches offenders society Wodonga tableau long weekend 2017 mobile sector wide study innovative school students anzac storytelling marrickville housing trends English conference communities ultimo baby name predictions lalor park Crime Rates travelling statistics buildings gen z australians staying home more the changing face of Australian Population millenials Work place moreton bay mythbusting data visualisation seasons future-proof cars baby names australia report 2013 Financial Planning Association trends insight ferry Australian Census professional services HSC generation alpha Geoff Brailey rich father's day results generational trends communications engagement research visualisation cultural diversity focus groups grandparents customer australian communities forum acf15 tips generation Z trend twentyseventeen easy rider goal social issues survey design public speaking Word Up Macquarie University grave decision organisations SMSF event daily commute demographics sydneycity paying to work weather challenge tertiary education greatness breakfast Financial Planning Association of Australia state South Australia learning styles suburbs career personalities Andrew Duffin households recap Deaths know the times high density living public holiday panel goals internships conference speaker 1975 waverton communicate New Zealand 2014 Northern Beaches Christian School Netflix tattoos list data analyst friendship not for profit Love young people commute cost of living darwin royal ashley mckenzie office space Bathburst NBRS Architecture ACF culturally diverse in depth interviews learning workshop year 7 data future of work leadership spirituality family Christchurch business index cooking narcissism gender conference presentation video SA supply and demand Tuesday Trends social media financial education future report ACF 2016 Real Estate Institute of Victoria selfie Gen Y group session affordability New South Wales define healthy future Northern Territory professional development business office research services dream group culture house price rise Population Clock dessert Aussie house price Melbourne mentor mccrindle tea global rising house prices faux-cilising hello fresh demographer owning a home tv report norwest research divorce rate workplace future proofing workplace culture future of education Social Trend Myth christmas optus poor insights experience conferences 2012 education research ageing hills shire toys resilience social commentary faux-ciliser Christmas lunch trades cash Sydney Hills Business Chamber finance Real Estate growth relevant pharmacy townhouses world mccrindle in the media teach property market social analysis australian social research easter parenting home mccrindle research population the average aussie women small business IT Specialists census 2016 shifts fresh affordable Australian demographics aged care puzzle FOMO sports the hills shire plans authenticity education sector organisational culture DESTEL property price winter click socialites REIV National Conference social educated Australian schools census results focus group urban living index learner award winner dreaming national crime rates residents youth unemployment housing market mother's day entertainment Australians living visualisation 1968 brand employment media release holiday social life The Daily Edition Tuesday Trend social change millennials Res Vis shopper's pick NSW Generation X economy infographic wall wealth suburb Assistant Store Manager clothing tea geomapping professional CBD menai sunburnt country sector local communities water holidays ageing population marriages capital cities suburban living Wagga Wagga royal baby Australian Communities Trends christianity increasing densification Engineering Manager optus my business awards presentation renting visual renter of the future financial independence New Zeland marriage generation millionth study global financial crisis google education future perth sydney speaker economic Kiwi 2016 census results prince george earn religion wellbeing eliane Royals names events story qualitative research etiquette housing growth medicine careers curiosity capital city Territory cost ACT World Water Day Northern beaches Event internship teacher online faux-cilise relational employers intern middle class daily telegraph high density apartments Vocational education leader social enquiry commuters priorities Australian Dream professional speaker Valentine’s Day baby names bus kate middleton mover and shaker mortgage program travel school satisfaction mining boom men environmental scanning gold coast ethnography baby name EFF not-for-profit post rationalism financial fears victoria gen alpha local 24 million national private wealth media commentary February 16 village environment product shbc rise of local coffee teleworking woolworths entrepreneurs of today home owner investment earnings winter blues demographic social shifts quote spend jobs networking REIV Conference training belief staff fears financial dreams Caregiver meals Research Executive 2015 1980 faith land of the middle class low density urban living volunteers proactive innovation non profit research pack baby boomers follow neutral bay investing population growth collaboration social lives hornsby church royal influence housing affordability Education Future Forum research report hobart outsourcing bondi 2020 emerging generations eliane miles moderators guide work wage generations motivate unemployment baby name trends SMART Australian Home newspaper Australian Bureau of Statistics teaching news consumer salary Mark McCrindle research data keynote trend tuesday home ownership deloitte presentations aussie culture Generation Y 2016 language sun PSI university "know the times" 2016 census

Archive