Research shows mortgage borrowers are paying the highest share of their income on housing costs in at least four decades, but the current situation for renters is not historically unusual.
abc.net.au/news/mortgage-borrowers-do-tougher-than-renters-as-rates-surge/102446870Economic research reveals the pain being felt by Australian mortgage borrowers, while casting doubt on the narrative of a universal rental crisis.Mortgage borrowers are facing the highest housing costs relative to income since at least 1984
On Monday, Australia's central bank lifted its benchmark interest rate to 4.1 per cent, the highest level since it was 4.25 per cent in April 2012. "For low-income households, they have actually declined slightly thanks to a) low rent increases in the years 2019 to 2021 and b) strong income increases thanks to stronger employment rates, lower unemployment rates and increases in welfare payments — both through indexation at CPI and recent increases in welfare payments in this budget and those attributed to Morrison."
"[It] still remains the case that low-income households pay a greater share of income on housing than any other group," he observed.The stress being felt by a large cohort of mortgage borrowers is starting to show up in rising mortgage arrears.
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