smh.com.au
Perth's Housing Crisis: Even High-Income Earners Priced Out
Soaring Perth property prices since 2019 have priced out even high-income earners, with new data showing that single individuals in 17 professions couldn't save enough for a 20% deposit, and only three out of seventeen analyzed couples could, highlighting the urgent need for housing policy changes.
- How has the dramatic increase in Perth's median house prices since 2019 impacted the ability of high-income earners to afford homeownership?
- Perth's housing market has become unaffordable even for high-income earners. Since 2019, median house prices have surged from \$486,000 to \$764,250, making it nearly impossible for single individuals across various professions, from childcare workers to surgeons, to save a 20% deposit. Even couples, with only three out of seventeen analyzed combinations able to save enough, face significant challenges.
- What policy changes are needed to address the affordability crisis in Perth's housing market, given that even high-income individuals struggle to save for a deposit?
- The current housing crisis necessitates policy changes. The widening gap between income and housing costs necessitates government intervention. While some use lower deposits, parental guarantees, or smaller properties, the increasing difficulty faced even by high-income earners points towards a systemic affordability issue requiring broader solutions beyond individual strategies.
- What factors beyond salary and savings contribute to the challenges faced by Perth residents in achieving homeownership, according to the Australia Institute's analysis?
- The Australia Institute's analysis reveals a stark contrast to the 2015 claim that a "good job" guarantees homeownership. Using ABS, ATO, and RBA data, the study shows that even saving 15% of after-tax income annually is insufficient for most single earners to reach a 20% deposit. This highlights a systemic shift, transforming Perth's once-affordable market into one where homeownership is increasingly unattainable for many.
Cognitive Concepts
Framing Bias
The headline and introduction immediately highlight the struggles of high-income earners, setting a tone that emphasizes the difficulty of homeownership in Perth. The use of statistics about high-income earners failing to save enough for a deposit before presenting broader context frames the issue as a widespread problem, even among those with high incomes. The article uses the quote from Joe Hockey to further emphasize the shift from previous times.
Language Bias
While the article uses statistics to support its claims, the repeated emphasis on the impossibility of homeownership for many, even high-income earners, uses strong language that leans towards a negative and alarming tone. Phrases such as "virtually impossible" and "unreachable" could be replaced with more neutral terms like "difficult" or "challenging." The use of "absurd" to describe Hockey's previous statement is also not neutral.
Bias by Omission
The article focuses heavily on the difficulties faced by high-income earners in Perth in affording homes, but omits discussion of the struggles faced by low-to-middle-income earners, who likely face even greater challenges. The article also doesn't explore potential solutions beyond suggesting changes to housing policy, neglecting other approaches such as increasing housing supply or addressing zoning regulations. While acknowledging some use alternative methods like lower deposits and parental guarantees, it doesn't delve into the prevalence or effectiveness of these strategies.
False Dichotomy
The article presents a false dichotomy by implying that the only ways to buy a home are saving a 20% deposit from one's salary or relying on parental assistance. It overlooks other options such as government schemes, using smaller deposits with lenders' mortgage insurance, or buying less expensive properties.
Gender Bias
The analysis includes examples using both male and female dominated professions, offering a relatively balanced representation of genders in the scenarios presented. However, the article doesn't explicitly analyze the potential impact of gender on homeownership challenges. More in-depth analysis could explore if there are existing gender inequalities in wages, career paths, or access to financial resources that might contribute to disparate homeownership rates.
Sustainable Development Goals
The article highlights the increasing difficulty for even high-income earners in Perth to afford homeownership, exacerbating existing inequalities in access to housing. The rising house prices make it nearly impossible for single individuals to save for a deposit, while even couples face significant challenges. This disparity in access to housing based on income widens the gap between socioeconomic groups, thus negatively impacting the goal of reduced inequalities.