The house price-to-income ratio in Australia was 122.1 as of the third quarter of 2024. This ratio, calculated by dividing nominal house prices by nominal disposable income per head, increased from the previous quarter. The price-to-income ratio can be used to measure housing affordability in a specific area. Australia's property bubble There has been considerable debate over the past decade about whether Australia is in a property bubble or not. A property bubble refers to a sharp increase in the price of property that is disproportional to income and rental prices, followed by a decline. In Australia, rising house prices have undoubtedly been an issue for many potential homeowners, pricing them out of the market. Along with the average house price, high mortgage interest rates have exacerbated the issue. Is the homeownership dream out of reach? Housing affordability has varied across the different states and territories in Australia. In 2024, the median value of residential houses was the highest in Sydney compared to other major Australian cities, with Brisbane becoming an increasingly expensive city. Nonetheless, expected interest rate cuts in 2025, alongside the expansion of initiatives to improve Australia's dwelling stock, social housing supply, and first-time buyer accessibility to properties, may start to improve the situation. These encompass initiatives such as the Australian government's Help to Buy scheme and the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF) programs.

The Crisis and Care Accommodation industry forms part of Australia's community welfare sector, and provides services for some of the most economically vulnerable people in Australian society, including children, those with long-term disabilities and the elderly. Even before the COVID-19 pandemic and the cost-of-living crisis, a growing number of Australians were at increased risk of homelessness, with many experiencing financial hardship, persistent disadvantage and social exclusion. Stagnant wage growth in inflation-adjusted terms, heightened housing stress and associated incidences of family breakdown and family violence have boosted demand for crisis and care accommodation over the past few years. Given high inflation and rising rental costs, many of the industry’s clients have become increasingly vulnerable and their needs are also becoming more complex. Rising disability prevalence is creating additional challenges for residential care providers, with the Australian Bureau of Statistics finding that 5.5 million Australians had a disability in 2022. However, the ability to meet increased demand has not necessarily been matched by additional funding, constraining industry and profit growth. In light of these socio-economic variables and supply constraints, industry revenue growth is expected to be a modest 4.3% annualised over the five years through 2024-25 to $5.7 billion, including anticipated growth of 4.1% in the current year. Solid demand for residential care services is expected over the coming years, bolstered by strong demand for homelessness services in the face of ongoing rent costs and inflationary pressures. An ageing population is set to continue driving demand for palliative care and respite services. Government policies and associated regulatory reforms - including those stemming from the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability - will dictate the industry's operating environment as the government looks to establish a roadmap for Australia's care and support economy. Industry growth rates will remain modest at 2.5% annualised over the five years through 2029-30, to reach $6.4 billion.

This dataset supports the 2013-2014 annual report of the Department of Human Services, which details how the department met its objectives and highlights key achievements for the reporting period. …Show full descriptionThis dataset supports the 2013-2014 annual report of the Department of Human Services, which details how the department met its objectives and highlights key achievements for the reporting period. This particular dataset is additional information providing a summary of Social housing data including, public rental housing, public housing client profiles, rental stock, stock management program activities, social housing dwellings and changes to Director-owned dwellings during 2013–14, Social housing assistance focuses on providing adequate, affordable and accessible housing targeted to those in greatest need, delivered cost-effectively and in coordination with support services where required. Social housing assistance is provided on a long or short-term basis. Long-term social housing assistance includes public rental accommodation, community-managed housing in Director-owned properties and community-owned stock for designated client groups and rental accommodation for low income Victorians with identified support needs. Long-term public rental housing also includes movable units. In recent years, housing assistance has been increasingly targeted to people in greatest need. Targeting to high need groups has impacts in terms of stock turnover and costs. Short-term social housing is provided to Victoria’s homeless individuals and families. Clients are assisted under the Crisis Supported Accommodation and Transitional Housing Management programs.

In 2024, Sydney had the highest price per square meter of land across major cities in Australia. Lot buyers expected to pay a premium of 1,617 Australian dollars per square meter in the capital of New South Wales. Conversely, lot buyers in Adelaide expected to spend around 750 Australian dollars per square meter of land. Prices through the roof Over the past decade, the surge in land and housing costs has been attributed to rapid population growth, driving up median prices for property and land, particularly in cities. In Sydney, the per square meter price of land has almost tripled since 2010, while the number of new property listings has declined over the years. A shortage of residential land available to build on has exacerbated the housing affordability crisis in Australia. Will lending rates continue to climb? The homeownership dream is out of reach for the average Australian without a housing loan. Nevertheless, Australia's high mortgage interest rates for both owner-occupiers and investors have impacted current and aspiring mortgage holders, with the value of household lending trending downwards over the past two years. While rates remained high in the first half of 2024, they likely reached their peak, as shown by the gradual plateau in the second half of the year. This stabilization should, in turn, accelerate buying, selling, and lending activities.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

As supply and demand issues continue wreaking havoc on housing construction in Australia, many other upstream and downstream industries will likely also feel the pain.