Corelogic figures released today confirm skyrocketing home prices across Victoria, sparking calls for a major investment in social and affordable housing to balance the runaway growth.
The data shows Melbourne home prices increased 1.8 per cent in May to post extraordinary quarterly growth of 5.5 per cent in Melbourne. In Regional Victoria, prices were just as hot, increasing 1.7 per cent for a quarterly rise of 6.2 per cent.
There were similar increases across the country with property prices for the month of May jumping 3.0 per cent in Sydney and 2.0 per cent Brisbane, 1.9 per cent in Adelaide and 1.1 per cent in Perth.
Prices have increased by 3.2 per cent in Hobart in the past month, 2.7 per cent in Darwin, 1.7 per cent in Canberra and 2.2 per cent nationally.
Everybody’s Home – a national campaign to end homelessness – said the market’s heat would price many out while generating unsustainable debt for many new purchasers.
“The best solution to this runaway housing market is an expansion of social and affordable housing,” said campaign spokesperson, Kate Colvin. “We need to release the housing pressure by giving more options to those who can’t participate in the boom.
“Cheap money is like rocket fuel for house prices. Unfortunately this inevitably leads to higher rents, unsustainable debt loads and worsening affordability.
“Social and affordable housing is a big part of the answer. It can moderate the effect of higher house prices and higher rents by giving those on low and modest incomes a realistic alternative.”
An Anglicare Rental Affordability Snapshot released last month confirmed it’s almost impossible for some people to access private rental housing.
The surveyed of more than 74,000 rental listings across Australia found:
- 859 were affordable for a person on the minimum wage
- 386 rentals were affordable for a single person on the Age Pension
- 236 rentals were affordable for a person on the Disability Support Pension
- 3 rentals, including share houses, were affordable for a person on JobSeeker
- 0 rentals, including share houses, were affordable for a person on Youth Allowance
“Stable housing is necessary to get a job, look after your health and your family. Instead of cheering on the housing boom we should be giving everyone the benefit of housing.”
Contact: Levi Joule 048 111 2074