Housing affordability remains a significant national challenge despite the latest HIA Affordability Report showing an improvement in the early months of 2017.
The latest HIA Affordability Report indicates there was a steady improvement in housing affordability in the first few months of 2017.
“During the March 2017 quarter, the HIA Affordability Index improved by 1.9 per cent – and is 1.2 per cent better than this time last year,” said HIA Senior Economist, Shane Garrett.
“The improvement in affordability is mostly due to a reduction in the national median dwelling price during the March 2017 quarter,” he said.
“Housing affordability remains a significant challenge," cautioned Garrett, saying governments still need to "secure the delivery of an appropriate supply of new homes and to reduce the barriers and costs involved in doing this."
The Treasurer's comments on leveraging private investment for affordable housing "are very welcome,” concluded Garrett.
The largest improvement in housing affordability during the March 2017 quarter occurred in Perth (+5.6 per cent), followed by Hobart (+5.3 per cent) and Sydney (+5.0 per cent).
Smaller gains in affordability affected the markets of Brisbane (+0.6 per cent) and Melbourne (+0.4 per cent).
Affordability declined in Canberra (-7.2 per cent), Adelaide (-4.0 per cent), and Darwin (-0.1 per cent).
The HIA Affordability Index results for the March 2017 quarter indicate that conditions are most challenging in Sydney. The scores are as follows.
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