Housing provides people with shelter, security, and privacy. Having an adequate and appropriate place to live is fundamental to people's wellbeing. Improvements to the overall accessibility of appropriate housing for Australians is important in determining whether life in Australia is getting better.

Most Australian households are able to exercise a significant degree of choice over housing when making their decisions about the cost of living, savings and investment. But for many low income households, renting is often the only affordable option, and suitable rental dwellings can become less accessible when rents rise faster than incomes. When the proportion of housing costs to gross household income for low income renters increases, it indicates that households are required to spend more of their available income on housing. This may occur at the expense of other household costs or savings, and result in a decline in overall living standards. In contrast, if the proportion declines, then households will have less financial pressure in meeting their various non-housing costs of living, or saving requirements.

Rental affordability for low income households (that is the proportion of housing costs to gross income for low income renters) has remained constant over the past 10 years (28% in 1999-00 and 28% in 2009-10). (Endnote 1)

For a more in-depth discussion about how housing relates to progress and whether it is improving in Australia, please see the Housing chapter in Measures of Australia's Progress, 2010 (cat. no. 1370.0).

ENDNOTE

1. Estimates presented for 2007-08 and 2009-10 are not directly comparable with estimates for previous cycles due to the improvements made to measuring income introduced in the 2007-08 cycle. Estimates for 2003-04 and 2005-06 have been recompiled to reflect, to the extent possible, the new measures of income. However, not all new income components introduced in 2007-08 are available for earlier cycles.