The Australian --- Page: 27 : 7 December 2006 Original article by Anthony Klan
ABIX Summary
New data on housing affordability have been compiled by the Real Estate Institute of Australia. The figures show that the majority of home owners now need to allocate in excess of 33% of income to servicing their mortgage loan, which means they meet the definition of suffering "housing stress". Affordability has declined to a level last seen in 1990, and Tasmania, Queensland and New South Wales owners are being affected the most. There will also be further rent increases due to demand outstripping supply, meaning those saving up for their first home purchase will find it even harder to save for a deposit. Recent official interest rate rises have exacerbated the problem, but an improvement is forecast for 2007.
