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Housing affordability 'getting worse'
March 03, 2008
MORE than a million Australians are spending 30 per of their income or more on rent or a mortgage, Tanya Plibersek says.
Releasing new research by the National Centre for Social and Economic Modelling (NATSEM), the federal Housing Minister said there had been a significant increase in housing stress over the past four years.
“1.1 million low-income families and singles are now spending more than 30 per cent of their income on housing costs and since 2004 that's another 220,000 people, that's a substantial jump in a relatively short period of time,” Ms Plibersek told ABC Radio.
Her comments come as the government prepares to announce details of a $600 million plan to encourage investment in cheap housing.
She raised particular concern about the steep increase in rents faced by elderly people.
“We've gone from 56,000 households to 112,000 headed by a person aged over 70 are now in housing stress,” she said.
Labor made housing affordability a major issue during last year's election and pledged to do all it could to bring down both the cost of buying and renting.
“I think that all of the measures that were committed to before the election will begin to help this problem but I am realistic,” Ms Plibersek said.
“It takes a while to build a house, there's no overnight solution here.”
Adding to the government's woes is the Reserve Bank board meeting tomorrow where the widely expected outcome is another interest rate rise.
“We are extremely concerned for families who are already feeling the pressure,” Ms Plibersek said.
“We know that every interest rate increase is a kick in the guts for those families.”
March 03, 2008
MORE than a million Australians are spending 30 per of their income or more on rent or a mortgage, Tanya Plibersek says.
Releasing new research by the National Centre for Social and Economic Modelling (NATSEM), the federal Housing Minister said there had been a significant increase in housing stress over the past four years.
“1.1 million low-income families and singles are now spending more than 30 per cent of their income on housing costs and since 2004 that's another 220,000 people, that's a substantial jump in a relatively short period of time,” Ms Plibersek told ABC Radio.
Her comments come as the government prepares to announce details of a $600 million plan to encourage investment in cheap housing.
She raised particular concern about the steep increase in rents faced by elderly people.
“We've gone from 56,000 households to 112,000 headed by a person aged over 70 are now in housing stress,” she said.
Labor made housing affordability a major issue during last year's election and pledged to do all it could to bring down both the cost of buying and renting.
“I think that all of the measures that were committed to before the election will begin to help this problem but I am realistic,” Ms Plibersek said.
“It takes a while to build a house, there's no overnight solution here.”
Adding to the government's woes is the Reserve Bank board meeting tomorrow where the widely expected outcome is another interest rate rise.
“We are extremely concerned for families who are already feeling the pressure,” Ms Plibersek said.
“We know that every interest rate increase is a kick in the guts for those families.”
