For International Media Release

Australia|Canada|Ireland|New Zealand|United Kingdom|United States

Embargoed for release: January 25, 2010 

HOUSING AFFORDABILITY - HOW DOES YOUR CITY RATE?

2010 6th Edition - Demographia International Housing Affordability Survey

HOUSING STRESS UNNECESSARY - ACTION REQUIRED NOW

 The current situation of housing stress on home owners caused by the unaffordability of housing is unnecessary, according to the authors of the 2010 international Demographia study.

The 2010 6th Annual Demographia International Housing Affordability Survey covers  272 major urban markets, comprising 23 for Australia; 28 Canada; 5 Ireland; 8 New Zealand; 33 United Kingdom and 175 for the United States.

Study authors Hugh Pavletich and Wendell Cox say urgent action is required to restore housing to affordable levels, so that households are not required to pay in excess of three times their annual income to purchase a house with a mortgage not exceeding approximately 2.5 times their annual household income.

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.

Affordable markets are 3 times household annual income or under; moderately unaffordable 4 times and under; seriously unaffordable 5 times and under and severely unaffordable 5.1 times and above.

Dr Recsei, an environmental consultant, explains the severity of the current housing crisis in Australia and corrects many of the "environmental myths" associated with urban housing markets.

A particular focus of this year's Demographia Survey is to clearly illustrate the real mortgage stress - by comparing the affordable housing markets of Atlanta and Dallas Fort Worth in the United States, with the severely unaffordable urban markets of Sydney and Melbourne, Australia.

The differences are substantial. The Demographia Survey states  -

"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 2010 6^th Edition Demographia International Housing Affordability Survey concludes by suggesting urgent action is required at the local level by -

(1) establishing sound and simple performance measures

(2) appropriately financing infrastructure, and

(3) allowing sufficient inexpensive urban fringe land on which to construct affordable housing.

 "The problems and solutions are obvious. It is now past time for real action," Pavletich says.

Australia, New Zealand and the United Kingdom have no moderately unaffordable major urban housing markets, while Canada has 13 and the United States 58.

There is only 1 seriously unaffordable market in Australia, 5 in Canada, 2 in Ireland, 3 in New Zealand, 14 in the United Kingdom and 8 within the United States.

Australia has the most severely unaffordable markets with 22, followed by the United Kingdom 19, the United States 11, New Zealand 5 and Canada 5. There are no severely unaffordable markets in Ireland.

The mid-point Median Multiple (house price divided by annual household income) for the 6 countries surveyed is the United States 2.9; Canada and Ireland 3.7; the United Kingdom 5.1; New Zealand 5.7 and Australia with the most stressed housing markets at 6.8 times annual household earnings.

Download a free copy of the 2010 6th Edition - Demographia International Housing Affordability Survey

ENDS

For further information please contact -

Hugh Pavletich, Co-author                                                                                           

Website: Performance Urban Planning                                                

Email: hugh.pavletich at xtra.co.nz        

Phone: 64 3 343 9944                       

Christchurch, NEW ZEALAND                                           

Wendell Cox, Co-author  

Website: Demographia    

Email: demographia at gmail.com 

Phone: 1 618 632 8507  

Dr Tony Recsei, Preface Contributor

Website: Save Our Suburbs        

Email: trecsei at bigpond.net.au 

Phone: 61 2 9487 2016 

Sydney, New South Wales, AUSTRALIA