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Illawarra Real Estate News
| 10 Feb 2010 - Housing affordability - how do we rate? |
The 2010 Demographia International Housing Affordability Survey covers 272 major urban markets in Australia, Canada, Ireland, New Zealand, United Kingdom and the United States.
According to this survey, the only affordable markets are in the United States (98) and Canada (5).
For housing to be deemed affordable, it must not exceed three times annual household income.
The least affordable market was Vancouver (9.3). Four of the five least affordable markets were in Australia: Sydney (9.1), Sunshine Coast (9.0), Gold Coast (8.6) and Darwin (8.6).
Study authors Hugh Pavletich and Wendell Cox attribute much of the problem to more
prescriptive land use regulation, which has virtually eliminated affordable land for building.
"As in the past, all of the severely unaffordable and seriously unaffordable major markets had more prescriptive land use regulation."
Pavletich and Cox applaud the efficacy of the program to expand new development land on the fringe of Melbourne, but deplore the concept of "plan-driven" land-use regulation.
"It takes from 6.25 to 14.5 years to convert urban fringe land into new houses, which compares to less than 1.5 years before urban consolidation, (as in) the `demand-driven' (more responsive) markets in the United States."
"The extensive plan-driven process tells land sellers and buyers precisely where land for development can be bought or sold, and as a consequence increases prices."
This year's Demographia Survey compares affordability across the various markets. The differences are substantial.
"In Sydney, the monthly mortgage payment on a new median priced house would be nearly $3,000 and more than $2,500 in Melbourne.
"By comparison, in Dallas Fort Worth, the monthly mortgage payment on a new median priced house would be under $800 and in Atlanta $700."
The survey is available from the Demographia website.
Right Choice Real Estate News.......
This information is obtained from various sources and cannot be guaranteed. You must make your own enquiries as to its accuracy.
According to this survey, the only affordable markets are in the United States (98) and Canada (5).
For housing to be deemed affordable, it must not exceed three times annual household income.
The least affordable market was Vancouver (9.3). Four of the five least affordable markets were in Australia: Sydney (9.1), Sunshine Coast (9.0), Gold Coast (8.6) and Darwin (8.6).
Study authors Hugh Pavletich and Wendell Cox attribute much of the problem to more
prescriptive land use regulation, which has virtually eliminated affordable land for building.
"As in the past, all of the severely unaffordable and seriously unaffordable major markets had more prescriptive land use regulation."
Pavletich and Cox applaud the efficacy of the program to expand new development land on the fringe of Melbourne, but deplore the concept of "plan-driven" land-use regulation.
"It takes from 6.25 to 14.5 years to convert urban fringe land into new houses, which compares to less than 1.5 years before urban consolidation, (as in) the `demand-driven' (more responsive) markets in the United States."
"The extensive plan-driven process tells land sellers and buyers precisely where land for development can be bought or sold, and as a consequence increases prices."
This year's Demographia Survey compares affordability across the various markets. The differences are substantial.
"In Sydney, the monthly mortgage payment on a new median priced house would be nearly $3,000 and more than $2,500 in Melbourne.
"By comparison, in Dallas Fort Worth, the monthly mortgage payment on a new median priced house would be under $800 and in Atlanta $700."
The survey is available from the Demographia website.
Right Choice Real Estate News.......
This information is obtained from various sources and cannot be guaranteed. You must make your own enquiries as to its accuracy.