• July 24, 2021

‘Lack of affordable housing’ makes it hard for new people to access affordable housing

It’s a problem that has emerged in a lot of the housing market.

Housing is becoming increasingly unaffordable for many.

The lack of affordable homes means people aren’t buying, and those that are can’t afford to move, says Ian Haughey, an economist at the Australian National University.

“If you’re looking at people’s ability to move into a house, if they’re moving into an area where the house has been, they’re not necessarily going to be able to afford to pay the mortgage on that house,” he says.

“So, as the housing stock has become less affordable, so has the supply.”‘

If you need a house you have to move’Haughey says there are two main reasons why people need to move: to access housing that’s more expensive or to get a new job.

“The first is because they can’t move into the same house as their current occupant,” he explains.

“You can have one person in a home, you can have two people living in the same home, and there are other things that people can do in that house that may make it more expensive to move.”

For example, if the house you’re renting is a larger property, it can be very difficult to move a couple of bedrooms to another property if you have that property on your own.

“In those circumstances, if you’re moving a lot, you’re also moving into a property that’s not as good a fit.”‘

It’s hard for the average household to get into’Some people need more than one home to get to the other.

But it’s not just that the average family doesn’t have enough money.

“It’s also because the average person can’t find affordable housing,” he adds.

“I mean, it’s very hard to find a house in the suburbs of Sydney that’s close to a town centre, so it’s pretty hard to get onto a house that’s a suburb of a town.”

And it’s also hard to rent, because you’re living in a big apartment, and you’re not going to have a big space to put your laundry.

“And what about those that do live in bigger cities?”

It is hard to move to a place that’s less than four kilometres from a major city, but it’s much easier to move in to a city where the cost of living is lower, where you can walk a lot and there’s lots of opportunities for work,” he notes.”

There’s also a lot more people in the workforce.

“You know, in Sydney we have more people who are working than in any other metropolitan area in the country, so we have a lot less people working, and it’s harder for the typical household to move.”‘

A lot of people are working’Many of the people who live in the city, particularly in the inner suburbs, have a high cost of housing.

“A lot more of them have very low incomes,” says Haughe.

“They don’t qualify for rent assistance, they don’t have the savings that they need, so they can only afford to live in these places because they’re living very, very cheaply.”

And this is the other thing that is preventing people from moving in, he says: the housing shortage.

“We have a shortage of rental apartments.

You know, we’ve had to do a lot to address this, but there’s a shortage,” he tells The Sunday Telegraph.”

Because of the very high cost, a lot people can’t get into the market because they don the right qualifications, they haven’t got the right kind of income.”

But, if there’s an opportunity to buy, they can afford to buy and the supply is there.

“And, obviously, the supply has gone down, so there’s less supply in those markets, so you’ve got more competition.”‘

There’s a lot fewer opportunities’The problem with housing, Haughoe says, is that there aren’t enough rental apartments available.

“Our rental housing stock is actually pretty poor,” he observes.

“That’s not a fault of the government, that’s an economic issue.”

The main reason is because housing supply is so low.

“People have been looking at these housing issues and we’ve been focusing on a very small proportion of the population,” he said.

“Whereas the problem we’re facing in the housing system is, the number of people who have an opportunity for housing is much higher than that.”‘

We’re seeing more of these issues’According to the latest figures from the Australian Bureau of Statistics, only 5.7 per cent of the total population of Sydney were living in apartments or houses, while the rest were living on the street.

“One of the main reasons we’re seeing this is because we’re actually seeing a lot higher than we thought, particularly around the CBD and in inner suburbs,” Haughel says.


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