ER Conference 2013

Housing Affordabilitythe crisis facing Western Australians on low incomes

Chris Twomey, Director Social Policy

Are we the Last Generation of the Australian Dream?

The Baby Boomers grew up in an Australia where the

average working family could own their home.

Generation X are on the cusp of rapid change in

housing affordability.

Home ownership is now mostly out of reach for Gen Y…

Are we the Last Generation of the Australian Dream?

Between 1996 and 2011, the percentage of Australians who own their home outright fell from 60% to 46%*

*Total owner occupied major city dwellings owned outright

Home Ownership

“The alarming drop in home ownership exposes many

Australians to domestic and financial insecurity.”

Australians for Affordable Housing

Source: NATSEM The Great Australian Dream? AMP Wealth Report 2011

Source: NATSEM The Great Australian Dream? AMP Wealth Report 2011

Affordability in Perth 2001 vs 2011

Source: Dodson and Sipe, Griffith University 2008. Unsettling Suburbia: The New Landscape of Oil and Mortgage Vulnerability in Australian Cities http://www.griffith.edu.au/__data/assets/pdf_file/0003/88851/urp-rp17-dodson-sipe-2008.pdf

2001 2006

WA Total number of dwelling builds WA Population growth

Series1 22439 78037

5,000

15,000

25,000

35,000

45,000

55,000

65,000

75,000

85,000

2011-2012 building approvals vs population growth

Source: ABS.

Ratio of 3.47 people to house building approvals

Social Infrastructure

WA population growth vs New dwellings completed

ABS (2013) 3101.0 Australian Demographic Statistics, Sep 2012ABS (2013) 8752.0 - Building Activity, Australia, Dec 2012Based on ABS 653.0 Household Expenditure Survey

* “New dwellings needed” calculated by dividing the population growth by WA average household

size (2.5 people).[3]

Population growth

New dwellings needed*

New dwellings completed

Population growth

New dwellings needed*

New dwellings completed

2010-11 2011-12

-

20,000

40,000

60,000

80,000

Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18% 19% 21%25% 28% 29% 28% 27% 27% 30%

Overall Median Rent (Perth) AWOTE (WA)Median Rent as a % AWOTE (WA)

Overall Median Rent (Perth) vs Average Weekly Ordinary Time Earnings (WA)

REIWA (2013) Historic Rental & Vacancy DataABS (2013) 6302.0 Average Weekly Earnings

Overall Median Rent (Perth) vs WA State Minimum Wage

Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13$0

$100

$200

$300

$400

$500

$600

$700

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

36% 37%43%

54%59%

63% 65% 63% 65%72%

Overall Median Rent (Perth) WA State Minimum WageMedian Rent as a % State Minimum Wage

REIWA (2013) Historic Rental & Vacancy Data. Department of Commerce, Western Australian Minimum Wage Rates 2000-2011,

Average Weekly Ordinary Time Earning (AWOTE)Adults Employed Full-Time & State Minimum Wage 2012

Janu

ary

2002

Janu

ary

2003

Janu

ary

2004

Janu

ary

2005

Janu

ary

2006

Janu

ary

2007

Janu

ary

2008

Janu

ary

2009

Janu

ary

2010

Janu

ary

2011

Janu

ary

2012

Janu

ary

2013

$-

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

Age Pension (single) AWOTE (WA) NSA (single) Minimum Wage (WA)

Inco

me,

$/w

eek

AWOTE

Min. Wage

Pension

NewStart

Growing Inequality – Gini coefficient WA

Comparative Inequality – Gini coefficient

Affordable rental accommodation available to working Western Australians

Job Type

Affordable rent per

week(30% of income)

Number properties available

% of market available

Number properties available

% of market available

1 bedroom not sharing

1 bedroom not sharing

1 bedroom in a share house/unit

1 bedroom in a share house/ unit

Pre-school teacher $210 3 0.01% 51 1.4 %

Qualified hairdresser $207 2 0.01% 48 1.3 %

Baker $189 0 - % 36 1.0 % Shop assistant $184 0 - % 36 1.0 % Cleaner $173 0 - % 19 0.5 %

Food processing worker $170 0 - % 19 0.5 %

Bricklayer, plasterer or carpenter $192 1 - % 41 1.1 %

Nursing assistant (1 year) $182 0 - % 36 1.0 %

Dental technician $191 1 - % 41 1.1 %AnglicareWA (2013) Rental Affordability Snapshot

If you were a qualified hair dresserlooking for a property to rent

without being in housing

(on 13 April 2013), there was only

properties in

that you could afford to rent (by yourself),

the whole of Perth2stress!

For more information, visit@WACOSS

@AnglicareWA#rentalsnapshot

Affordable Housing

shop assistant or bakerlooking for a property to rent

without being in housing

(on 13 April 2013), there were

properties in Perth

that you could afford to rent (by yourself), ZERO

stress!For more information, visit

@WACOSS@AnglicareWA

#rentalsnapshot

If you were a cleaner,

Affordable Housing

Social Housing – Unmet Demand

- that the provision of safe, affordable and secure housing is a fundamental, first step in being able to address disadvantage and other areas of need being faced by many Western Australians.

Community service organisations recognise the

‘housing first’ principle

Affordable Housing

The Panel:

Barry Doyle Community Housing Coalition of WA

Chantal Roberts Shelter WA

Genevieve Errey Department of Housing

Anne Maroni Uniting Care West

Shane Hamilton Community Housing Ltd

Chris Twomey WACOSS