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Sydney Suburbs (NSW) Inc.
News Release January 2006
A year ago we publicised a well researched report on housing affordability. A second edition of this report has now been produced as a result of which we issue the following release on this most important subject.
SAVE OUR SUBURBS
25 January 2006
SYDNEY HOUSING BECOMING ONE OF THE MOST EXPENSIVE IN THE WORLD
Sydney has experienced an unprecedented loss in housing affordability. An international study comparing the affordability of housing shows Sydney is among the least affordable cities in which to buy a new home. The 2nd Annual Demographia International Housing Affordability Survey compares housing affordability in six countries and shows Sydney among the worst in the severely unaffordable bracket. The city is placed seventh most unaffordable in the 100 markets surveyed (the survey can be seen on http://www.demographia.com/dhi-ix2005q3.pdf).
"Housing costs have rocketed in Sydney" said Dr Tony Recsei, President of the community group Save Our Suburbs. "It now takes on the average 8.5 years of household income to buy a house in Sydney" he said. "We have gone backwards. In 1981 it only took 4.9 years of income to buy a house. This places Sydney more expensive than London, Vancouver, New York and nearly all other large United States cities.
"The major cause of this iniquity is the Government’s Urban Consolidation policy. The New South Wales Government has increasingly strangled the land supply, creating artificial scarcities and driving land prices into the stratosphere. In 1976 the land component of the price of a house was 32%. Now the price of land comprises 60% of the cost of buying a house. The survey clearly shows in the countries surveyed that cities with such land rationing policies have the highest housing costs.
"This unaffordability hits young people the hardest. In time the fact that new generations will not be able to afford a family home will be bitterly resented" Dr Recsei concluded.
Save Our Suburbs (SOS) NSW Inc
Phone 02 9487 2061
President, Save Our Suburbs
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