The data from Corelogic released today shows the national average home price has increased 20.3 per cent over the past year setting a new record.
The past year saw an increase in house prices in Sydney of 23.6 per cent and an increase of 15 per cent in Melbourne. Prices have also risen over the past month even in places where in person inspections were prohibited. There was 2.3 per cent increase in house prices in Hobart, a 2 per cent rise in Canberra, and a 1.9 per cent jump in Sydney for the month of September.
Kate Colvin from Everybody’s Home said rising prices during an economic downturn was concerning given rising unemployment and stay at home orders impacting the country’s two largest states.
“These Corelogic figures show the fastest annual growth in house prices since 1989. That is particularly concerning given we are in the midst of a Covid-19 downturn with so many Australians having lost income.” Ms Colvin said.
Everybody’s Home says increases in rents and house prices are a disaster for those whose earnings have been slashed during Covid, and for people who were already struggling to get by on a low income. The need to invest in social housing is more and more urgent.
“The Federal Government can’t leave the housing security of the nation to the states alone, when they have the fiscal firepower to rapidly inject new affordable rentals into a market that is desperate formore low cost housing” Ms Colvin said.
Data released in June by the Australian Institute of Health and Welfare showed that from 2014 – 2020, the proportion of social housing households fell from 4.6 to 4.2 per cent.
An economic downturn coupled with rising house prices and a shortage of social housing is denying many Australians opportunities in other areas of their lives as well.
“To deny Australians access to safe secure housing is to deny them the opportunity to meaningfully contribute to the wider economy. That hurts all of us. We need the Federal Government to take action and build social housing now.”
Kate Colvin 0418 103 292
Levi Joule 048 111 2074
