COSTS TOO HIGH FOR MANY
LESS than one quarter of Perth homes are affordable for those earning less than the Perth median household income, according to the findings of a new housing affordability study.
The report, Housing Affordability – A study for the Perth metropolitan area, found more than 50 per cent of Perth homes were affordable only to high-income households earning more than $102,841 gross annually.
Of the 110,779 sales analysed during the study from 2013 to 2015, less than one per cent were considered affordable to very low-income households earning less than $43,000 gross annually, and about 8 per cent were affordable to low-income households earning between $42,851 and $68,560 gross annually.
Housing Minister Brendon Grylls said while the property market had softened and improved availability for some, those on the lowest incomes were still finding it extremely difficult to find available, appropriate and affordable housing.
“With over 80 per cent of sales being larger properties, it’s also evident that there’s a lack of diversity in Perth’s housing stock,” he said.
The exception to this was in the inner-city suburbs, where 34 per cent of sold properties had two bedrooms or less.
Shelter WA executive officer Chantal Roberts said the research identified the limited housing options for low to moderate-income households in Perth.
“There are many households that are trapped in our insecure private rental market due to a lack of diverse and affordable options, particularly in locations close to jobs and services,” she said.
“A range of varied and affordable housing is needed across all areas to support the development of strong and diverse communities.”
REIWA president Hayden Groves said the report highlighted key issues affecting the industry and the community as a whole.
“We can see from the findings that both housing affordability and diversity are issues to be addressed and we’re looking forward to working with both the Housing Authority and Shelter WA on further research regarding the state of the WA housing market,” Mr Groves said.
The report is the result of a collaboration between the Real Estate Institute of Western Australia, the Housing Authority and Shelter WA and will be published this month.