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Younger Australians are disproportionately bearing the burden of higher housing costs, according to analysis by the Reserve Bank.
Median housing debt-to-income ratio for Australians under 39 years of age has risen 29 per cent in the six-year period to June 2010, compared to the 20 per cent rise for the oldest Australians in the same time.
The increases leave younger Australians with a median housing debt of 333 per cent of household income or more than double the 159 per cent for the over-60 crowd.
Advertisement: Story continues below "The increase in the cost of housing has affected younger households, whether renters or purchasers, more than other age groups," said the report, based on data from the Australian Bureau of Statistic's twice-a-decade Household Expenditure Survey.
After rising incrementally through the past decade, Australian home prices peaked in the final quarter of 2010. The run-up in prices has squeezed affordability and left the median capital city house price at $448,500 in October, according to RP Data.
Even as prices skyrocketed, the pace of construction languished. St George Bank estimates the slow pace of house building will leave the country with a shortage of 140,000 affordable homes in 2012.
The Reserve Bank’s analysis in its December quarter Bulletin released today, concluded that households headed by a person aged 40 to 59 saw their median housing debt rise 14 per cent, to 211 per cent of income in the same period.
"The share of housing in total expenditure is typically higher for renters than for households with mortgages across the age distribution, with the largest increase in the expenditure share on housing having been for young households," the report said.
All age groups were paying more over time, the report said.
"There was a significant increase in the share of spending on the broad housing category between the 2003-04 and 2009-10 housing expenditure surveys."
The RBA researchers said the overall increase in the share of spending on mortgage debt and rents was offset by a fall in expenditure on new homes by owner-occupies.
"The decline is consistent with the fall in the number of private dwelling completions over the same period," they said.
Capital city home prices fell 4 per cent in the year to October, according to research group RP Data
Median housing debt-to-income ratio for Australians under 39 years of age has risen 29 per cent in the six-year period to June 2010, compared to the 20 per cent rise for the oldest Australians in the same time.
The increases leave younger Australians with a median housing debt of 333 per cent of household income or more than double the 159 per cent for the over-60 crowd.
Advertisement: Story continues below "The increase in the cost of housing has affected younger households, whether renters or purchasers, more than other age groups," said the report, based on data from the Australian Bureau of Statistic's twice-a-decade Household Expenditure Survey.
After rising incrementally through the past decade, Australian home prices peaked in the final quarter of 2010. The run-up in prices has squeezed affordability and left the median capital city house price at $448,500 in October, according to RP Data.
Even as prices skyrocketed, the pace of construction languished. St George Bank estimates the slow pace of house building will leave the country with a shortage of 140,000 affordable homes in 2012.
The Reserve Bank’s analysis in its December quarter Bulletin released today, concluded that households headed by a person aged 40 to 59 saw their median housing debt rise 14 per cent, to 211 per cent of income in the same period.
"The share of housing in total expenditure is typically higher for renters than for households with mortgages across the age distribution, with the largest increase in the expenditure share on housing having been for young households," the report said.
All age groups were paying more over time, the report said.
"There was a significant increase in the share of spending on the broad housing category between the 2003-04 and 2009-10 housing expenditure surveys."
The RBA researchers said the overall increase in the share of spending on mortgage debt and rents was offset by a fall in expenditure on new homes by owner-occupies.
"The decline is consistent with the fall in the number of private dwelling completions over the same period," they said.
Capital city home prices fell 4 per cent in the year to October, according to research group RP Data
