Housing affordability means the problem that is faced by the young adults(i.e., those who earn less than average earning of households) to get suitable housing in the marketplace at the initial stage. Layton, Robinson& Tucker (2016). Likewise, according to toparliamentperspective of Australia‘Housing affordability’ means the correlation between an income of the household and home expenditure, i.e., price and payment of the loan, home rent. According to Layton et al. (2016), the heights of difficulties might be measured with a time duration that is required to the younger generation for working and saving sufficient amount of capital to purchase a new home. Much younger Aussie is making an effort to purchase the home by utilizing their small amount of savings that is shown by them and the money that they borrowed by the financial institution and that loan for housing purpose mainly at least 20 years (Layton, Robinson, & Tucker, 2016). Also, they said that the continuous increment in the house rates in comparison with the little percentage increase in the income of people are the continuous increment in the home rates in comparison with a small increment in the people’s earning that is the main aspect. Though, several factors which affect the purchasing power of the person. Therefore the present research of business has tried to talk relating to methodology, vision and aim, difficult statement and its solutions.
Housing affordability was the becoming serious problem in Sidney over a past year. It has been revealed while14th Annual Demographic International Survey of Housing Affordability that rates of houses are 13 times higher in comparison with the incomes of median houses that have made Sydney as the worst city after Hong Kong relating to housing affordability. It has been identified in the 14th Annual Demographic International Survey of Housing Affordability that ratio of price to the ratio of income was 12.9 that is nearly 13. therefore, Kupke and Rossini (2011) said, In Sydney people who belong to the group of average income take 13 years for saving money to purchase a new house.
In the last 20 years in Sydney the rates of home has been more than 2 times that may be measured from comparison of the rates of house rates of March 1980 in which the prices of home were $64800 on the other hand, in March 2016 the price of houses is $999600 (Parliament of Australia, 2016). According to Gan and Hill (2009), several Australian populations were experiencing housing difficulties like they were spending 30% and more than that for the household cost. Likewise, the scarcity of funds was impacting the housing affordability of people and affecting the productivity and lifestyle of the Australian population (Burke, 2018). As per the view of Robinson (2011), the personal life and workforce market gets affected by the high prices of houses like they have to postpone the important occasions, i.e., switching job or long hours working, marriage, retirement, bringing a new baby into life.
The major purpose of this study was to analysis some important factors due to which the housing affordability of people has been declined in Sydney and identifies several possible solutions for solving the issue of increased growth in the housing rates. The main aim is to:
For properly accessing the variables that impact the affordability of home of people and addressing the important purpose or mission of this research select mixed methodology. The concept or method known as the mixed method is simply a study done after collecting data, analyzing them, and interpreting those using qualitative as well as quantitative aspects (Cox, Pavletich & Hartwich, 2017). To analyze a complex notion which is the affordability of housing in Sydney which has the highest price to income ratio in Australia and 2nd highest in the world, interviews have to be conducted I order to have a proper survey of the variables related to the topic. Therefore, to have a clear grasp on the topic, the mixed methodology can be used so that one can understand what are the aspects leading to the increase in the prices of a house and what stops a person from owning his place (Chappell & Campbell, 2018).
In order to develop a clear understanding regarding the topic of the study the first process is to undertake complete literature review related to key aspects like affordability of house, price to earnings ratio, problem of high housing rates, impact on personal lives and mental health of people due to low housing affordability and several procedure and policies for controlling the prices of home. The review will involve peers point of view articles along with the business article, documents of The 14th Annual Demographic International Survey of Housing Affordability, National Housing Supply Council (NHSC) and Parliament of Australia.
For selective participate participation of people, a set of questionnaire and forum will be made, and an open discussion will be made or by various online sources. Also, the discussion will be held with the person who is having the background of real estate and with whom who wants to share his/her point of view. Likewise, for Qualitative data, all data that has been collected will be presented in a graphic form like chart and graph that will highlight how the personal lives of first house purchaser are affected due to housing affordability.
To conduct a proper study, we have chosen a group of 10 people who are the employees and managers of a real estate firm in Sydney (Chappell & Campbell, 2018). They were presented with a set of questions, which provides specific knowledge regarding housing affordability
Q1. Do you own a house in Sydney?
|
Options |
Responses |
Response frequency |
Number of respondents |
|
Yes |
7 |
70% |
10 |
|
No |
3 |
30% |
10 |
Table 1: Number of people owning a house
Figure 1: Number of people owning a house
Q2. What are how one can live in Australia?
|
Options |
Responses |
Response frequency |
Number of respondents |
|
Rent a place |
4 |
36% |
10 |
|
Buy a house |
5 |
46% |
10 |
|
Homes on wheels or vans |
2 |
18% |
10 |
Table 2: Modes of living
Figure 2: Modes of living
Q3. How far do you agree with housing affordability being a serious concern?
|
Options |
Responses |
Response frequency |
Number of respondents |
|
Strongly agree |
4 |
40% |
10 |
|
Agree |
2 |
20% |
10 |
|
Neutral |
1 |
10% |
10 |
|
Disagree |
2 |
20% |
10 |
|
Strongly disagree |
1 |
10% |
10 |
Table 3: Understanding issues regarding the affordability of houses
Figure 3: Understanding issues regarding the affordability of houses
Q4. What are the benefits of owning a house?
|
Options |
Responses |
Response frequency |
Number of respondents |
|
Personal space |
4 |
40% |
10 |
|
The sense of empowerment and stability |
5 |
50% |
10 |
|
Starting a family |
1 |
10% |
10 |
Table 4: Benefits of owning a house
Figure 4: Benefits of owning a house
Q5. What are the negative aspects of owning a house?
|
Options |
Responses |
Response frequency |
Number of respondents |
|
Mortgage |
6 |
60% |
10 |
|
Overtime or working at different places |
4 |
40% |
10 |
Table 5: Negative aspects of owning a house
Figure 5: Negative aspects of owning a house
From the survey conducted above, we can say that the interview was fruitful. It provided us with a clear understanding of what is the position of a first buyer of the house (Bryant, 2017). It provides modes of living whether or not one has a house, it also features the benefits and negative aspects of buying a property, and both are serious prospects. While the increase in prices stops people from buying a place to live, the economic state of the country also scares the people already owning a home. The study states how people are aware of their conditions and that will help them secure a good place someday when the government is working beside the people for their growth.
References
Burke, K. (2018).The wellbeing of Sydneysiders and city’s economy suffering due to poor housing affordability, the report finds. Retrieve from https://www.domain.com.au/news/wellbeing-of-sydneysiders-and-citys-economy-suffering-due-to-poor-housing-affordability-report-finds-20180308-h0x7w2.
Gan, & Hill. (2009). Measuring housing affordability: Looking beyond the median. Journal of Housing Economics,18(2), 115-125
Kupke, V., & Rossini, P. (2011). Housing affordability in Australia for first home buyers on moderate incomes. Property Management,29(4), 357-370.
Layton, A., Robinson, T., Tucker, I., B.(2016). Economic for today ( 5th ed.).South Melbourne, Victoria Cengage Learning.
Parliament of Australia (n.).Housing affordability in Australia. Retrieve fromhttps://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook45p/HousingAffordability.
Robinson, Elly. (2011). Housing Stress and the Mental Health of Families. Parity,24(3), 18-19.
Bentley, R.J. and et al., 2016. Housing affordability, tenure and mental health in Australia and the United Kingdom: a comparative panel analysis. Housing studies. 31(2). pp.208-222.
Gurran, N. and Phibbs, P., 2017. Planning reform for affordable housing supply. Planning News. 43(4). p.6.
The 14th Annual Demographia International Housing Affordability Survey.Retrieve from https://www.demographia.com/https://www.performanceurbanplanning.org/
Litman, T. (2016). Parking requirement impacts on housing affordability — Victoria Transport Policy Institute.
Cox, W., Pavletich, H., & Hartwich, O. (2017). 13th annual demographic international housing affordability survey: 2017.
Chappell, J., & Campbell, N. (2018). The Housing Gap—Sydney, Australia. In Sustainable Development Research in the Asia-Pacific Region (pp. 293-304). Springer, Cham.
Bryant, L. (2017). Housing affordability in Australia: an empirical study of the impact of infrastructure charges. Journal of Housing and the Built Environment, 32(3), 559-579.
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