Housing becomes a luxury in Australia as rents and interest rates soar.

The statistics today revealed what renters and aspiring homeowners knew already, that it is b ecoming increasingly impossible not only to find a property to purchase, but even a home to rent.

Young single individuals are unable to strike out on their own and are living at home for longer.  Those who are educated have the burden of paying their student loans, casualised insecure working conditions and just a shortage of properties for rental.  The situation is so dire that renters are queuing up to bid for rental properties.

Rental prices have risen ahead of wages and the lack of rental stocks as a result of investor retreat, people deciding not to purchase a home due to increasing interest rates are setting us up for a housing crisis never seen before.

The previous government’s ten year abandonment of adequate public housing is now coming home to roost.  The problem cannot be turned around overnight and with the world economic situation deteriorating, it is unclear what could be done to fix things.

The many young people that I know are really struggling in Sydney.  House prices range in the $350,000-$550,000 in outer suburbs and anything upward from there closer to the city.  With medium rentals reaching $400 a week it is obvious how hard the situation has become.

Parents everywhere are joining their European counterparts and allowing their young people to remain in the family home for longer periods so that their children are able to find accommodation. Many families are struggling under the weight of this situation as the generations have to negotiate new ways of living under the same roof.

Where once young people launched off into the world at very young ages with the benefit of full employment and full time work security, today the insecurity of wages and the high cost of mortgages and rentals are delaying this process.  The strain on family relationships are beginning to show.

Not only do older generations have babysitting of their grandchildren to look forward to, some may have to share their home with whole families as the housing crisis worsens.

PHOTO OF THE DAY:

The Calkin Glacier is located in the Taylor Valley in Victoria Land. It was named for Parker Calkin, US Antarctic Program geologist who conducted research in the area during the 1960-61 and 1961-62 field seasons.

Calkin Glacier in Antarctica

Photograph by: Mike Embree, National Science Foundation. Date Taken: February 5, 2007.

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~ by abstraktbiblos on Thursday, 24 July, 2008.

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