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HOUSING TENURE, NSW
HOUSING COSTS AS A PROPORTION OF GROSS INCOME, MEDIAN RATIO
From the 2007–08 Survey of Income and Housing, the median ratio of housing costs as a proportion of gross household income was calculated for households of different tenure types in Sydney, the Balance of NSW and NSW overall. While this analysis focuses on the median ratios it should be noted that the income and housing costs underlying the ratios vary considerably between households of different tenure types (see Table 3 of the Housing Datacube for details).
The survey showed that the ratio of median weekly housing costs to median gross weekly household income was 14% for all households in NSW, compared to 16% for Sydney households and 10% for households in the Balance of NSW.
The ratio of median weekly housing costs to median gross weekly household income was lowest among NSW home owners without a mortgage (3%) and this ratio was the same in both Sydney and the Balance of NSW.
For all recent home buyers with a mortgage in Sydney - that is, those who purchased their first home or changed their home in the last three years - median housing costs as a proportion of their median gross household income was 27%, slightly higher than for households in the Balance of NSW (25%). While the ratio of housing costs to income for all recent home buyers with a mortgage remained consistent for Sydney households between 2003–04 and 2007–08 (both 27%), for households in the Balance of NSW it grew from 20% to 25%.
The ratio of median housing costs to median household income for recent first home buyers with a mortgage in Sydney was 27% in 2007–08, lower than the ratio of 30% in 2003–04. In contrast, the ratio for recent first home buyers with a mortgage in the Balance of NSW increased from 23% to 28% over the same period.
The median housing costs as a proportion of median gross household income for private renters in Sydney and Balance of NSW in 2007–08 (both 21%) have remained relatively steady since 2003–04.
HOUSING COSTS AS A PROPORTION OF GROSS HOUSEHOLD INCOME(a)(b)(c)–Median ratio, Sydney
The preliminary price index for established houses (see Glossary) in Sydney recorded a large annual increase, up 21% in the June quarter 2010, compared to a slight annual decrease in June quarter 2008 (down 0.8%). The movement through the year to June quarter 2010 (up 21%) was the largest year to June increase in the series which commenced in 2002.
ESTABLISHED HOUSE PRICE INDEX(a)(b), Sydney
HOUSING FINANCE COMMITMENTS
Housing market demand can be reflected in the value of housing finance commitments, that is, mortgages. The combined value of new housing finance commitments (both owner occupiers and investors) was $72.2 billion in 2009–10, an increase of 10% from the previous year and the highest value since the peak of 2003–04 ($70.4 billion). These changing levels of finance commitments reflect the pattern of movement in the established house price index in Sydney.
Since 2004–05, the value of new finance commitments for owner occupied households in NSW has grown at a relatively steady rate to $44.8 billion in 2009–10. In contrast, the value of investor dwelling commitments grew more rapidly to a peak in of $36.0 billion in 2003–04 (representing over 50% of the value of commitments), declined to 36% of commitments in 2008–09 and then increased to $27.4 billion (38%) in 2009–10.
HOUSING FINANCE COMMITMENTS(a), NSW: Original
In 2009–10 the average home loan commitment for NSW first home buyers was $300,300, an increase of 5.9% over the previous year and 66% from 2001–02.
FIRST HOME BUYER FINANCE COMMITMENTS (OWNER OCCUPATION), Average loan size, NSW: Original
SALES AND RENTS (Footnote 1)
Housing NSW publishes statistics on both the value of weekly rents for new bonds and the median sales prices for strata and non-strata dwellings in the Local Government Areas (LGAs) within the Sydney Greater Metropolitan Region (GMR). The Sydney GMR is a combined area consisting of the Sydney Statistical Division (SD), Newcastle Statistical Subdivision (SSD) and Wollongong SSD.
In the year to March 2010, the median sales prices for non-strata dwellings and strata dwellings in NSW recorded annual increases of 17% and 14% respectively. During the same period, the median sales prices for non-strata dwellings and strata dwellings in the Sydney Statistical Division (SD) recorded annual increases of 26% and 15% respectively.
In the year to March 2010, the median sales price for non-strata dwellings in the Sydney GMR recorded annual increases in all of the 51 LGAs, with an average increase of 16%. Some 19 LGAs had a higher than average increase, with Strathfield recording the largest annual increase (59%), while Mosman recording the smallest annual increase (0.9%). The median sales price for strata dwellings in the year to March 2010 increased by an average 11% across Sydney GMR LGAs. Again, 19 LGAs had an above average increase, with Manly recording the largest annual increase of 37%.
Median weekly rents for new bonds are recorded for flats and units with one or two bedrooms and separate houses with two or three bedrooms. In the year to June 2010, NSW recorded annual increases for the median weekly rents for each one bedroom flats/units (4.5%), two bedroom flats/units (5.7%), two bedroom separate houses (8.0%) and three bedroom separate houses (6.7%). During the same period, Sydney Statistical Division (SD) recorded annual increases for the median weekly rents for each one bedroom flats/units (5.4%), two bedroom flats/units (5.0%), two bedroom separate houses (6.5%) and three bedroom separate houses (8.6%).
In the year to June 2010, 17 LGAs in the Sydney GMR recorded a 10% or more annual increase in the median weekly rent of a one bedroom flat/unit, as did 13 LGAs for the median weekly rent of a two bedroom flat/unit. Wyong and Hawkesbury LGAs recorded the largest annual increase for two bedroom flats and units in Sydney GMR LGAs (respectively, 19.3% and 19.0%). For the year to June 2010, 11 LGAs recorded increases of 10% or more in the median weekly rent of two bedroom houses, while 20 LGAs recorded annual increases of 10% or more in the median weekly rent of three bedroom houses.
Housing NSW provides housing assistance to people who are on low incomes and who meet the needs assessment criteria. As at 30 June 2009, there were 122,600 public housing rental properties in NSW. Blacktown LGA had the most public rental properties (9,600 properties or 7.9% of all public rental properties), followed by Sydney LGA (8,700 properties or 7.1%) and Wollongong (6,600 properties or 5.4%).
At 30 June 2009, there were 230,000 persons (117,300 households) living in NSW public housing. The LGAs with the highest number of persons living in public housing were:
While the high-ranking proportions of public housing tenants and households in Blacktown and Wollongong LGAs are commensurate with their population sizes (respectively first and third largest in NSW at 30 June 2009) the level of tenants and households in Sydney and Campbelltown LGAs are higher than their population ranking (ninth and fifteenth largest in NSW respectively).
Data cubes with detailed statistics are available on the Downloads page.
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