There’s always talk in the media about housing affordability – or the lack of it.
Leith van Onselen discusses it in an article in MacroBusiness article here. “This week, Commsec published the below chart showing that Australian housing is the most affordable in a decade, requiring only around 380 weeks on the average wage (just over 7 year’s income) to buy a typical house. This is down from around 430 weeks average wages (just over 8 year’s income) required to buy a home in 2008 and 2010. While the improvement in housing affordability is clear, Australian housing still remains unaffordable compared with pre-2000 norms.
Obviously if you are a property investor you should be looking towards landlocked suburbs where the population is growing and where massive demand will far outstrip the rate of dwelling construction. You should also be directing your attention away from the the cities which have recently experienced booming prices, in order to begin moving ahead of the median national rate of growth.More of us…One final point: the population of Australia at the beginning point of the below chart was 15,750,000.At the time of writing the population of Australiais 22,821,770 with that figure continuing to increase every one minute and 31 seconds. Millions of extra people wanting to live in the same limited number of prime-location, desirable suburbs tends to push prices upwards over time.Australia’s population continues to increase by more than 6,000 people each week, with most of the new heads heading to the existing capital cities.
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