Housing Emergency Ramping Up
Key workers priced out of Adelaide housing market, Property Council research reveals
Key workers are priced out of Adelaide's housing market, new research reveals, with the Property Council calling on the Malinauskas Government to take a razor to new housing development costs.
The report, Beyond Reach, found that for many key workers, Adelaide suburbs are priced well above the 'affordable' 30 per cent threshold of household income required to service a mortgage.
Accessing home ownership in suburbs across Adelaide often requires five to nine times the average key worker household income, according to samples studied in the report.
The report finds that only a household income of $150,000 per year or more can provide access to new, entry level housing across the suburbs surveyed.
The suburbs (and respective electorates) included in this report were:
Munno Para (Light)
Tea Tree Gully (Newland)
Port Adelaide (Port Adelaide)
Salisbury (Ramsay)
Hallet Cove (Black)
Magill (Morialta)
Christies Beach (Kaurna)
Mount Barker (Kavel)
Adelaide CBD (Adelaide)
Seaton (Lee)
Prospect (Adelaide)
Unley (Unley)
South Australian Executive Director of the Property Council, Mr. Bruce Djite painted a bleak picture of the current situation.
"This report is a wake-up call to the government to slash the cost of developing housing", Mr. Djite said.
"The research contains damning case studies quantifying that housing in Adelaide is simply beyond reach for everyday South Australians.
"Across a variety of households, workers from both blue and white collar industries are priced out of the market.
"Adelaide is now Australia's second most expensive housing market on a relative basis and only trails Sydney when you consider incomes relative to house prices - if action is not taken this will worsen out to 2030.
"To truly promote affordability and boost housing supply, it is imperative that the government (both state and local) slash taxes, charges, and compliance costs associated with developing new housing."
Mr Djite said that development charges that ultimately get passed onto homebuyers include:
• Developer land tax
• Council rates
• Development approval fees
• Stamp duty for developers
• Infrastructure contributions
• Utility charges including water, sewerage, stormwater augmentation fees
• Code Amendment fees
• Land Titles Office lodgement fees
• Open Space contributions
The Property Council's report highlights several key worker household case studies who are locked out of Adelaide's housing market.
Examples include:
• An ambulance officer and a nurse with a combined household income of just above $150,000 would be priced out of the housing market in Tea Tree Gully, Port Adelaide, Seaton, Mount Barker, Christies Beach and Hallet Cove.
• A childcare worker in a single income household is unable to afford a median priced house OR unit in any the suburbs surveyed.
• A dual income household comprised of an electrician and a shop assistant earning a combined income of just over $133k would find all suburbs in this report unaffordable.
• A police officer on a full-time wage of approximately $87k is unable to afford a median-priced house in all surveyed locations.
The findings underscore the urgent need for policy intervention to ensure that Adelaide's key workers can access affordable housing. New housing is more expensive than it needs to be and changing this is within the control of the government.
