Report reveals grim sign for Australian house prices

PHOTO: Tens of thousands of young Australians joined the welfare line in March. Picture: Sam Ruttyn Source:News Corp Australia

An alarming study has revealed the “incredible stress” Australians are suffering through to try and afford rent and mortgage each week.

Property experts are bracing for a sharp fall in housing prices after a new report confirmed the coronavirus crisis led to the number of Australians unable to pay their rent or mortgage on time more than doubling.

A survey from the Australian National University revealed those who were unable to service regular housing costs surged from 6.9 per cent to 15.1 per cent from April to May.

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It’s well documented younger generations are more vulnerable to economic shocks and this demographic is suffering as the nation slides into its first recession in nearly 30 years.

“What’s also worrying is that young adults are experiencing very high rates of housing stress, with 44 per cent of people aged 18 to 24 years unable to pay their rent on time,” study co-author Professor Matthew Gray said.

“Young Australians are still more likely to be in housing stress once income and socio-economic status is controlled for, suggesting that there is more to housing stress than just income for this group.

“This is because their accumulated savings and wealth are likely to be low.”

The rate of those aged 18-to-24 experiencing higher levels of housing stress soared 10.3 per cent to 27.5 per cent over the month, while those aged 35-to-44 suffered a threefold increase in housing stress, rising from 5.9 per cent to 19.1 per cent.