MOUNTAINS HOUSING COSTS SKYROCKET
9 August, 2007

Federal Labor candidate for Macquarie Bob Debus says local residents are right to feel angry and uncertain about the future following the release of a report that shows housing costs in the Blue Mountains have soared.

The Urban Development Institute of Australia (UDIA) has revealed that the median cost of a home in the Blue Mountains rose from $230,000 in 2001 to more than $350,000 in 2006.

“The housing affordability crisis has now spread far beyond the fringes of Sydney to hit working families in the Mountains,” said Mr Debus.
“This is a particularly vicious blow for young people hoping to buy their first homes.

“The double-whammy of another interest rate rise and soaring home prices will lock even more first-home buyers out of the market.”

The UDIA describes the decline in housing affordability as "striking", and the results of their review as "alarming".

The report rated areas "affordable" if people on average incomes could buy more than half the homes in the area. “Unaffordable” areas were those where people on average incomes could afford to buy less than 15 per cent of homes. The UDIA rated detached homes in the Blue Mountains as “affordable” in 2001 but the rating plummeted to “seriously constrained” in 2006.

“Most Australians dream of owning their own home but today many have to face the harsh fact that housing is less becoming affordable than at any time in our history,” said Mr Debus.

“Rental costs are also soaring, hurting those people who are saving to buy their first home.

“The housing affordability crisis has hit younger Blue Mountains families hard. We are seeing a worrying increase in families struggling to make ends meet and a decline in the numbers of young people buying homes.

“This is not good enough. The Howard Government is asleep at the wheel while housing affordability plummets.

“This report is the most recent in a series issued by the housing industry, which is profoundly frustrated by the lack of interest and leadership by the Howard Government on housing affordability – despite the fact it is one of Australia's biggest social problems.”

The UDIA called for a Ministerial Council on Housing Affordability; federal policies and funding to help states and local government finance housing infrastructure; and policies to tackle the shortage of skilled workers.

Federal Labor has policies that deliver on all these pressing priorities.

Kevin Rudd recently convened a National Housing Affordability Summit, and announced:

1 A $500 million Housing Affordability Fund to tackle the undersupply of new residential housing, cut down on holding charges and contribute to infrastructure
2 A National Housing Supply Research Council, to analyse the adequacy of land supply across the nation, as well as rates of construction
3 Infrastructure Australia – a statutory authority to oversee reform, planning, development and investment in priority infrastructure
4 A cabinet-level Minister responsible for federal policy on housing