House price growth outstrips income growth nearly three-fold: Affordable housing group

House prices have risen by 147% but incomes by only 57% over the past decade, according to the recently formed lobby group, Australians for Affordable Housing.

Housing affordability was the single biggest cost of living issue, according the Australians for Affordable Housing’s analysis.

"Housing costs are both the biggest item in household budgets and the fastest increasing cost – having increased 55% over the last six years," AAH spokesperson Sarah Toohey says.

She also noted in the past five years rents have risen at twice the rate of inflation. “Households are paying more than they can afford for housing, with over 740,000 renters and more than 380,000 mortgaged home owners reporting significant financial stress,” Toohey says.

“Despite significant investment in recent years, there is less public and community housing properties now than there was in 2003.

“Housing stress affects renters, first time buyers and home owners.

"The Australian housing system is failing too many people, and successive government policy settings have contributed to this failure,” Toohey says.

"We need strong leadership from the Federal Government to drive the necessary changes at the federal, state and local government levels.

"It’s time for a new approach, to develop a concrete plan to fix the housing crisis,” says Toohey.

The campaign steering committee includes Australian Council of Social Service, Community Housing Federation of Australia, Homelessness Australia, National Shelter, National Association of Tenants Organisations and PowerHousing Australia, a national trade association and business co-operative of growth community housing providers whose aim is to grow the supply of affordable housing in Australia.

The campaign, chaired by Sacred Heart Mission chief Michael Perusco, suggests nearly one in 10 households are in housing stress with a "startling 460,000 households spending more than half of their income on housing costs."

"It’s time to make some noise about housing affordability," the website notes.

It urges government action by providing:

• More low-cost rental housing
• More opportunities for low income households to get into home ownership
• Better financial assistance for low-income renters
• Revised housing investment tax arrangements to put them on a fairer footing with other investments
• Options to make home ownership easier for first-home buyers
• A clear national plan to deliver affordable housing to all Australians