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Housing affordability close to ‘record lows’ in HIA-CBA report

Housing affordability in Australia is close to record lows according to the HIA-CBA Housing Affordability Report for the June quarter 2010.

Housing Industry AssociationThe Housing Industry Association – Commonwealth Bank of Australia Housing Affordability Report examines affordability for first home buyers. In the three months to June, the HIA-CBA Housing Affordability Report found affordability fell by 6.1 percent across Australia as Interest Rate increases and rising house prices conspired to make houses less affordable.

“As housing affordability slips away, so too does the chance for many Australians to realise their dream of owning a home,” said HIA Chief Economist Harley Dale.

“Unless as a nation we are willing to accept that home ownership is no longer a fundamental tenet of our society worth fighting for, then substantial federal engagement in addressing plummeting housing affordability is required.”

“There has been a dire lack of commitment in this Federal election campaign to address the substantial hurdles aspiring home owners face. Helping Australians afford a roof over their head is surely a fundamental responsibility of government,” Harley Dale added.

The HIA-CBA Housing Affordability Index fell to be 30.4 percent lower compared to the same period last year in the June report. Affordability declined by 6.5 percent over the June 2010 quarter across the nation’s capital cities and was down by 3.5 percent in Regional Australia.

Sydney’s housing affordability deteriorated the most, with falls of 9.1 percent, Regional Victoria was close behind with a 9.0 percent fall in affordability followed by Regional Tasmania (-8.8 per cent), and Adelaide (-8.7 per cent).

“Key federal policy priorities need to include a program to reduce new housing costs such as inequitable taxes and charges, better planning approvals systems, and a dedicated Federal housing and development ministry to coordinate policy across all sectors and levels of government,” Harley Dale said.

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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