NSW households spend the greatest proportion of their income on rent and mortgage repayments of all households in the country. And with NSW’s population expected to increase by 2.25 million by 2036, the competition for accommodation will continue to put significant upward pressure on rents and property prices.

Housing Stress – low to moderate incomes households that pay more than 30% of their income on housing costs is bad and getting worse. The impact on the health and future opportunities of families living in ongoing housing stress can be devastating. For example, a report titled “Experiencing the Housing Affordability Problem” by T Burke and S Pinnegar reveals that 38.7% of children living households experiencing Housing Stress had gone without adequate health or dental care.

The following observations were contained in the NSW Government’s Affordable Housing Taskforce’s Draft Report:

• By a range of indicators, there is a housing affordability issue facing NSW and this is particularly acute in Sydney and other large regional centres. While this issue impacts all families seeking to purchase a home or access a rental property, it is a significant challenge for lower income families.
• The long term underlying trend of declining affordability is driven by an increasing gap between the prices of dwellings to purchase and rent and wages. In NSW, the current median house price is 3.5 times the median house price 20 years ago, representing a 250 percent increase (from $129,000 to $450,000). Over the same time period the median household income has only increased by 2.5 times the median household income 20 years ago.
• The increase in people unable to afford to purchase a home has a flow on impact on the private rental market, leading to increased demand and pressure on rental prices and leaving 57% of low income private renters in NSW in housing stress (compared with 42% in Victoria, 46% in Queensland and 40% in the ACT).
• Housing that is affordable and appropriate is fundamental to the physical, mental and social well-being and quality of life of individuals and families. Many people are struggling with the challenge of declining housing affordability. These include families with unmanageable levels of debt, those who are working longer hours in order to cover their housing costs, those who have found affordable accommodation but are travelling long distances to work and services, and those who are unable to cover the costs of household expenses.

If we are at all concerned about building a stronger community, appropriate and affordable housing needs to become a much higher priority social policy area.