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Jan 19 2013

Mortgage Payments v Income


Many times I have people saying that the cost of accommodation in Australia is very very high, and that many people have to pay a lot more than one third of income for their property rent or mortgage.

This question was addressed in the Australian Census in both 2006 and 2011, and the actual facts are not as bad as many people believe.

  1. Households where mortgage payments are less than 30% of household income
  2. Households where mortgage payments are 30%, or greater, of household income

2011

90.1% mortgage payments are less than 30% of household income
9.9% mortgage payments are 30%, or greater, of household income

2006

91.6% mortgage payments are less than 30% of household income
8.4% mortgage payments are 30%, or greater, of household income

Compared to 2006, the latest figures do show that it has become slightly worse in recent years.

In 2006, 916 households, out of every 1,000, paid less than 30% of income in mortgage payments, but this had dropped to 901 in 2011. A change of 1.64% in 5 years.

Source: www.censusdata.abs.gov.au

 

A similar question was asked to renters:

  1. Households where rent payments are less than 30% of household income
  2. Households where rent payments are 30%, or greater, of household income

2011

89.6% rent payments are less than 30% of household income
10.4% rent payments are 30%, or greater, of household income

2006

90.7% rent payments are less than 30% of household income
9.3% rent payments are 30%, or greater, of household income

Compared to 2006, these latest figures also show that it has become slightly worse in recent years.

In 2006, 907 households, out of every 1,000, paid less than 30% of income in rent payments, but this had dropped to 896 in 2011. A change of 1.21% in 5 years.

Comparing Renters to Mortgage payers

2011

90.1% mortgage payments are less than 30% of household income
89.6% rent payments are less than 30% of household income

Renters are slightly worse off with only 896 of each 1,000 paying under 30% of income, compared to 901 mortgage holders.

Median Rent, Mortgage and average full time wage.

The Australian median rent increased from $190 pw to $285 pw between 2006 and 2011, an increase of 50.00%

The median mortgage payment increased from $1,300 pm to $1,800pm between 2006 and 2011, an increase of 38.46%

Wages however increased from $1,093.80 pw to 1,390.50 pw, between Nov 2006 and Nov 2011, an increase of only 27.13%

Source: abs.gov.au 6302.0 – Average Weekly Earnings, Australia. Earnings; Persons; Full Time; Adult; Total earnings ;






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