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Renters already struggling to find affordable housing are being left further behind as funding for the government’s landmark housing policy kicks into gear, new data reveals Became.
Rental prices rose faster than home prices for the second year in a row, real estate data group CoreLogic reported Monday.
Rent growth in 2023 was 8.3%, outpacing the 8.1% rise in house prices and the 4% rise in wages in the 12 months to September.
This follows a 9.5% increase in rents in 2022 and a 9.6% increase in 2021.
With rental vacancies at historic lows, additional supply is desperately needed in the market to keep prices down.
Housing approvals in 2023 showed a slight upward trend, but remained relatively low.
CoreLogic said monthly housing approvals averaged 13,760 over the past six months, below the 10-year average of 17,254.
The Albanon government has promised to boost the struggling housebuilding sector, pledging to deliver 1.2 million new homes over five years.
A key piece of the housing puzzle was put in place on Monday with the opening of applications to the government’s Housing Australia Future Fund.
Housing Minister Julie Collins said the fund, in conjunction with the National Housing Agreement, would deliver 40,000 social and affordable rental homes over the first five years.
“We are taking every opportunity to get things built as quickly as possible, understanding that this is a difficult challenge and that we cannot turn things around right away,” he told reporters.
Mr Collins acknowledged that a shortage of skilled workers was constraining the construction industry’s ability to supply new homes, but said government investment in fee-free TAFE and immigration schemes would help alleviate the problem. Ta.
“We are also looking at innovative construction methods,” she said.
“We know that Queensland, Western Australia and Victoria are looking at modular housing and alternative construction methods to get homes built as quickly as possible.”
Data released by the Australian Bureau of Statistics on Friday showed first home buyers are gaining market share despite rising interest rates.
“New homebuyers are leading the way, with new loan commitments up 2.8% for the month and 25.8% for the year,” said Steve Mickenbecker, financial expert at Canstar.
By comparison, investor lending increased by 18% in the same year.
“In recent years, first home buyers have had to navigate the impact of rising interest rates on their borrowing power,” Mickenbecker continued.
“Purchasing a first home, especially in Sydney, remains a big challenge, but more buyers are breaking into the ground floor.”
That’s good news for homebuyers, with most experts expecting the Reserve Bank to keep interest rates on hold in February before starting a rate-cutting cycle by the end of 2024.
A Finder survey of 19 experts and economists found that 17 think the RBA will keep the cash rate unchanged at 4.35% at its February meeting. More than half expect at least one rate cut by September.
Graham Cooke, head of consumer research at Finder, said Australians were desperate for respite, with four in 10 mortgage holders struggling to make their mortgage payments in December. .
“We expect to see some relief soon, and with a little luck, the pressure will slowly ease over the next few months,” Cook said.
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