A new report has found that an astounding one third of young Australians are unlikely to ever get out of the rental rat race and afford their own home.
Worse still, 70 per cent of young adults under the age of 35 in Sydney will never make it into the housing market.
The Homes for All report, released by the independent body the McKell Institute, makes a number of recommendations to rectify the ongoing housing affordability issues facing young Australians, including the abolishment of negative gearing incentives for property investors and untaxed capital gains on people’s principal place of residence.
One thing the report highlights is just how critical Sydney’s dwelling shortage is becoming.
This undersupply is having a direct impact on prices in the Harbour City, where it now takes nine times the median salary to buy a house; a steep rise from just three decades ago when it took three times the average wage to become a homeowner, and a rate that makes the likes of London and New York property markets look cheap.
Many experts and developers blame the convoluted State government planning processes for restricting the supply of accommodation in Sydney, with bureaucratic red tape making it nigh on impossible to obtain planning approval for new projects.
Additionally, the report says there are serious knock on effects occurring for tenants in Sydney, with rents rising four times faster than inflation and pushing low income renters into the outskirts of the city and further away from employment opportunities.
According to the McKell Institute, this in turn adds to pressure on public housing waiting lists.
Commenting on these recent findings, NSW Opposition Leader John Robertson said, “It’s time for bold thinking and honesty about the supply and demand factors that lock so many people out of housing.”
“… No parent wants a society where children are forced to rent for the rest of their lives or be forced interstate, separating them from their grandkids.”
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