Thousands locked out of home market
The Housing Industry Association says a whole generation of Australians aged under 40 are being prevented from buying their own homes due to escalating property prices. Home ownership levels have fallen to 54 per cent among younger adults from 64 per cent in 1989, the HIA says. This has consequences for their retirement years. The HIA was making a submission to the Productivity Commission's inquiry into first-home affordability. The Australian Council of Social Services also made a submission and said that about half of Australia's households live on less than $40,000 a year and cannot possibly save to buy their own homes. ACOSS recommends replacing negative gearing with tax credits for partial cover of rental housing construction costs.