Mortgage Payments Edging Towards 50 Percent of Household Income, Senate Committee Told

A latest housing affordability report reveals that households are now spending over 40 percent of their income on mortgage payments, while national rental vacancy rates have dropped to an all-time low of 1.6 percent. Maria Edward, CEO of the Real Estate Institute of the ACT (REIACT), shared these findings before a Senate committee on the National Housing and Homelessness Plan Bill. Edward emphasised housing’s critical role in Australia’s economy, noting the residential real estate sector’s $10.8 trillion (US$7.1 trillion) valuation. However, she warned of a deepening housing crisis, impacting everyday Australians and straining the broader economy. “Property managers are overwhelmed by high demand, with many applicants competing for each rental property amid a severe supply shortage,” she said....