Housing affordability at crisis levels, Bowen claims

Adam Smith 22 September 2016

house coins seesawShadow Treasurer Chris Bowen is set to deliver a grim assessment of housing affordability in a speech today.

Bowen is set to address the McKell Institute today in Melbourne. Fairfax Media, which obtained a copy of Bowen’s speech, said Bowen is set to speak on the growing inability of young people to purchase a home.

"Overall home ownership in Australia is at a 60-year low. In 1982, 62% of people aged 25-34 owned their own home. By 2012, this had collapsed down to just 42%,” Bowen will say, according to Fairfax.

Bowen will argue that rising house prices are locking younger Australians out of the property market, Fairfax said.

"Over the last 25 years, young people have gone from having to pay just five times, to now having to pay up to 15 times their annual income to purchase a new home,” Bowen will say. ”The inability of young people, in particular, to buy a home to accommodate them has reached, I say calmly and soberly, crisis levels. We are a nation that can no longer house its own children."

Bowen is expected to use the speech to tout Labor’s proposal to limit negative gearing to newly-constructed properties and halve the capital gains tax concession. He will argue that action must be taken to protect middle class home ownership, and that it’s unacceptable for “governments to shrug their shoulders” over housing affordability.

Latest home loans headlines

Image: Shutterstock

More great ideas from finder.com.au

Get a life insurance quote
Get a life insurance quote

Find out what it costs to protect yourself and your family

More info...
Refinancing home loans
Refinancing home loans

Choose from offers with rates as low as 3.39% p.a.

More info...
Google Pixel
Google Pixel

Compare plans for Google's flagship Android phone

More info...
Christmas ideas
Christmas ideas

Visit our Christmas homepage for gift ideas, markets, travel & deals

More info...

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback