Housing Affordability in NSW [infographic]

Monday, January 30, 2017

We’ve all heard about the difficulty of buying into the housing market in recent times and the subsequent decreases in home ownership rates (in NSW, from 68% in 2004 to 63% in 2014). With less people able to afford a home in the current market, there have been increases in the numbers of people looking to rent in New South Wales, and particularly Sydney.

We were delighted to be commissioned by Churches Housing and Shelter NSW to uncover the story of rental unaffordability in New South Wales. Through this research, we discovered that finding an available, affordable rental property is becoming increasingly difficult, particularly for those in the bottom 20% of income earners.

The decrease in the availability of rental properties over the last decade or so, has been influenced by a number of factors. Rental prices have increased due to the increased numbers of people looking to rent, and in past decades, rental prices have grown faster than income.

The infographic particularly highlights the difficulties for the bottom 40% of income earners in looking for appropriate rental properties. The term ‘rental stress’ is used to describe those in the bottom 40% who are spending over 30% of their income in housing costs. In 2013-14 NSW had the highest proportion of low income households experiencing rental stress, at 76% (compared to 68% nationally). For these households, rental stress can impact on other areas of life, including health care, schooling, diet and in the worst case can sometimes lead to homelessness. 

The New Australian Dream

Thursday, September 01, 2016

Owning your own four bedroom house on a decent block of land with a big backyard and outdoor swimming pool used to be the quintessential 'Great Australian Dream'. But with rising property prices and increased living costs, that dream is being redefined.

what is the Average Australian Profile?

The average full time annual income in Australia is $80,000, which is bumped up a bit because of high income earners. Even though we are living longer now than a generation ago, the average retirement age is little changed, at 61.5 years.

The cost of housing is up with average rent prices per week at $485/week and the average house price (capital city) is $765,730. In Melbourne it is well above this and in Sydney it is around $1 million. This is where the challenge is for Australians: 40 years ago the average house price was around 5 time’s average earnings and now you can see it is almost 10 times the average annual fulltime earnings.

Other than affordability, what else are Aussies looking for?

Lifestyle is key. People are opting to live in higher density areas for the sake of convenience and location- within close proximity to transport, restaurants – the café culture as it has been called. Our Urban Living Index shows a strong correlation between the most urban/densified suburbs and those with the highest liability ratings.

Australians are opting for a lifestyle of Minimalism - we are 'decluttering' our lives and putting more value on the intangibles like travel. Generation Y aren’t opting for a big home with garages to store all their stuff but more of a focus on the easy-livability of apartment living. Indeed many baby boomers are downsizing from their larger homes in the suburbs to this style of living too.

Renting, as opposed to buying, what some of the benefits?

The ability to change locations easily is well regarded – the average Australian renter stays just 1.8 years per home. Our research shows that 1 in 3 renters are actually 'choice renters' and they choose to rent for lifestyle reasons, not primarily for affordability reasons. These choice renters are twice more likely to be living in medium and high density housing than the average Australian and they are almost 10 years younger than the average Australian. The ability to upsize and downsize easily and the flexibility to travel for extended periods of time is a driver for them. ‘Rentvesting’ is also becoming a ‘thing’. This is where people choose to rent in an area they like, but buy somewhere more affordable and use this as an investment

Generation Y are struggling to attain the Great Australian Dream – are they going to be ok?

There is a challenge emerging of "generational inequity" as shown by this infographic:

Gen Y’s have the least wealth of the working generations and their proportion of Australia’s wealth is less than half their demographic share, while the Baby Boomers who are a quarter of the population, own more than half of Australia’s wealth. (More information on this topic can be found here)

This is why Gen Y is reinventing the Aussie Dream and while they do still like the idea of owning something of their own, it is not just the big home with the back yard in the suburbs. But many in this generation will be absolutely fine thanks to the massive intergenerational wealth transfer set to happen in the next 20 years as those aged over 65 transfer much of their total wealth of $2.5 trillion.

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare

Last 150 Articles


data analyst hopes wolloomooloo low density public holiday mccrindle transport responsive fresh New South Wales schools Northern beaches Event Gen Y sunburnt country holidays suburban living forecast infographic group session grandparents 1975 repayments ease of travel trend tuesday rising house prices financial fears brand wage social commentary 24,000,000 high school New Zealand ACF 2016 clothing growing population baby name trends Word Up intern Northern Territory children increasing densification Macquarie University education sector perth social issues long weekend sector wide mccrindle tea city hornsby contiki SMART moreton bay annual income ashley fell tv offenders land of the middle class market research cultural diversity consumerism Assistant Store Manager speakers 10 years digital geomapping google for education debate JOMO sunny days the hills event changing face of sydney mother's day states student millionth home challenge office opening investing media activity Queensland 2017 research data impact cars ageing population sentiments Melbourne media release workplace relational education research learning styles new york times Valentine’s Day trades Work place work-life school demographic trends educated Financial Planning Association meetings future of work local communities supply and demand youth unemployment housing growth financial independence newspaper life tertiary education qualitative research priorities FOMO faux-cilise brisbane Generation Y authenticity aged care puzzle earning victoria engagement affordability business names average Australian conference DIY marriages The ABC of XYZ townhouses baby names report NT tips greatness public speaker WA parents dream volunteers global generations poor workplace culture 2016 social life mining boom Engineering Manager list high density living weather 23 million financial australia Australians innovative teach collaboration divorce rate future proof weekly earnings bureau overcast safe family debt visualisation trends of 2017 emerging technologies cash research pack narcissism technology social analysis PSI politics housing market affordable youth stats the australian dream community Real Estate Australian Trends Population Clock language Bathburst poker master shopping centre logan keynote speaker 1968 families finance government faux-cilising teaching nfp lalor park Vocational education pyrmont learner report renting friendship innovation purpose menai ultimo Australian Bureau of Statistics collaborative baby boom Wodonga FPA wedding communities office area data professional speaker cartodb Wellington christmas sydney event property market Territory engage cost of living sydney speaker optus my business awards ethnography culturally diverse presentation South Australia proactive population growth spirituality Myth builders salary Andrew Duffin students faux-ciliser Northern Beaches motivate healthy future social trends professional services public speaking rental stress NBRS Architecture Wagga Wagga community event growth research services living communications CBD generation alpha demographic mythbusting apartments plans commuters Financial Planning Week identity charity mccrindle in the media capital city NBRS social researchers Real Estate Institute of Victoria community engagement princess charlotte anzac apartment unaffordable toys hello fresh survey Mark McCrindle going out cancelling event earn socialising McCrindle Speakers interactive insight tattoos Financial Planning Association of Australia social research Charlotte Canberra trends megatrends future-proof work 40 million young australians sydney metro eliane future proofing the hills shire results belief rule keeper university online shopping property optus organisations world youth day Crime Rates Royals small business story emerging generations meals baby boomers social 24 million home owner social commentator futurist parenting wealth and income distribution Sydney Western Australia social enquiry future of education case study thrive ideas ashley mckenzie infographic wall bus social shifts snapshot conference presentation selfie urban living index huffington post happiness publication sustainable typical australian census fail tea Sydney keynote speaker year 12 local resilience gold coast entrepreneurial school students car population World Water Day world pharmacies couple village study financial dreams Christchurch communication house price mover and shaker VIC baby name personal growth participants forum home ownership employers income statistics state shifts crows nest tableau vegetarian paying to work mythbusters jobs of the future train in the media GPO royal baby manly staying in experience Gen X mobile hobart mateship HSC Kiwi micro office space entertainment cancelling plans educhat wealth house prices SA university degree social change "know the times" potts point alpha average sydneysider generation Z Christmas lunch schools students presentations James Ward Netflix New Zeland wealth distribution new office summer SRE survey design divorce internships visual VET sector #censusfail Channel Seven food wealth and income shopper's pick child care household news travel young people professional financial future national private wealth Aussie wages research report millenials Hills Shire Council leadership business index daily commute investor gen alpha urban organisational culture education future property price households not-for-profit census 2016 cancel plans dreaming social media real mortgage 2016 census australians staying home more NSW leader future click eliane miles Tuesday Trends deloitte grave decision faith urban living NEETs Australia Day 2017 trends analyst balance focus group baby media English communicate unemployment Tasmania year 7 internship economic Deaths teleworking workshop recap Sydney Hills Business Chamber waverton sports kate middleton resource census results marrickville goals SMSF Do It Yourself cooking demography staff jobs forecasting retirement population milestone work mates equip Skilling ACF census data facts demographic transformations easy rider entrepreneurs of today high density apartments Australian Dream Caregiver Australia Day shopping program local community blaxland CPI insights social researcher middle class skills daily telegraph Australian schools micro apartments royal family tuesday outsourcing define demographer travelling teachers criminal baby name predictions etiquette System's Architect church Love ABS holiday Res Vis researcher norwest moderators guide gen z wellbeing society trends crime suburbs video Queensland: QLD careers optimistic prince george winter blues trend trends of 2016 gender stay home employment commute sydneysider social impact women Tuesday Trend housing affordability fears rent Geoff Brailey workforce product water darwin Hornsby Shire Council socialites 2020 consumer 2013 Duchess of Cambridge rich conferences capital cities renter of the future media commentary sydneycity winter father's day sector wide study economy Generation X buildings society royal influence education Research Executive population map ageing sector DESTEL baby names Christmas presents data visualisation learning Australian communities pharmacy lifestyle goal Australian Population generations google mccrindle research Channel 7 baby names australia report christianity learn housing trends emerging trends 2012 events suburb australian social research cloudy days analysis census February 16 IT Specialists thought leadership award Social Trend post rationalism medicine networking environment business performance investment quote cost EFF customer easter Scouts 1980 Northern Beaches Christian School research professional development non profit 2016 census results Education Future Forum school satisfaction group aussie culture Christmas season cultural diveristy 2014 australian communities forum twentyseventeen vegemite house price rise follow know the times brands social lives January 26th the average aussie focus groups housing marketing budget Births men omnibus global financial crisis keynote ACT demographics VET Australian demographics slideshare sydneysiders research visualisation teacher national crime rates mentor panel spend award winner 1994 Aussies neutral bay royal storytelling breakfast REIV Conference national wealth celebration entrepreneur in depth interviews environmental scanning energy cica curiosity domestic TDE cold TAS 2015 bondi aged care Australian Communities Trends the changing face of friends REIV National Conference generation rain house Merry Christmas Australian Families dessert internet dare to dream leadership workshop Kirsten Brewer relevant graphs christian training future of shopping personalities residents millennials Adelaide rise of local generational trends high density hills shire not for profit urban taskforce religion sydney hills ipswich monarchy online coffee brand experience marriage change average aussie earnings education future report conference speaker global woolworths sun australian communities trends report Australian Home shbc The Daily Edition acf15 ferry Australian Census owning a home seasons culture career litter