My disdain for the majority of journalists that misinform the public by declaring property booms and the end or recessions is well known. They can rarely base any of their claims on fact so I thought it was time to put the situation right and fully inform Australians about the state of our housing market. Are prices going up or down and should we really care?
There have been several recent studies into how affordable housing is in Australia compared to the rest of the world – the results have been frightening. The International Housing Affordability Study for 2009 has shown that Australia has an enormous problem with housing un-affordability.
The International survey covered a number of cities across six countries – Australia, Canada, Ireland, New Zealand, the United States and the United Kingdom.
The survey results were conveyed by giving a numerical value to each city’s affordability.
A result of 3.0 or less represented “affordable”
A result of 3.1 to 4.0 represented “moderately unaffordable”
A result of 4.1 to 5.0 represented “seriously unaffordable”
A result of 5.1 or above represented “severely unaffordable”
The Sunshine Coast in Queensland, Australia scored the worst result of all with a mark of 9.6 – making it the most unaffordable area in all of the six countries. The Gold Coast in Queensland, Australia, scored the third worst mark of 8.7, Sydney, New South Wales, Australia came in as the fifth most unaffordable and Bundaberg was the other Australian location in the top ten most unaffordable cities in the six nations coming in at tenth position.
Australian cities represented half of the top fourteen most unaffordable cities in the six countries with Adelaide coming in twelfth, Melbourne thirteenth and Mandurah in fourteenth spot. 24 Australian cities were ranked as 5.1 or above – making them severely unaffordable – more cities than any other country in the survey.
In total 27 Australian cities were included in the survey and apart from the 24 that were considered as severely unaffordable, the remaining 3 were considered to be seriously unaffordable. No Australian city in the survey was considered affordable or moderately unaffordable – a very scary situation. The average mark scored by an Australian city was 6.0 – severely unaffordable.
The conclusions of the survey were simple. If Australian property prices do not decrease then the average standard of living would have to in future generations. Maybe next time you read an article from a “sensationalist” or “headline” grabbing journalist you can think about this massive worldwide survey. Prices cannot possibly continue to increase without the standard of living dropping across the country – Whether prices go up or down we are definitely in a very serious situation.